|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 29, 2012|
|Winnipeg – ICE Canada canola futures were stronger Thursday morning, as supportive nearby technical signals helped the market outpace soybeans to the upside.
Recent activity in canola has shifted the nearby bias to the upside from a chart perspective, according to an analyst accounting for some of the speculative buying interest in the market.
A lack of significant farmer selling together with steady end user demand and concerns over tightening supplies provided underlying support for canola as well, according to traders. Statistics Canada releases its final production estimates for the year on December 5, and some market participants are anticipating the agency will confirm an even smaller crop than predicted in the previous report.
CBOT soybean futures were higher in early activity, providing underlying support for canola as well. European rapeseed and Malaysian palm oil futures also posted modest gains overnight.
South American crop prospects kept some caution in the futures overall. While recent dryness in Brazil and excessive moisture in Argentina has supported the oilseed markets recently, record large soybean production is still likely from the region.
Profit-taking at the highs was also expected to limit the upside potential in canola, as values near upside resistance.
About 1,600 canola contracts had traded as of 8:37 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:37 CST:
Futures Prices as of December 12, 2013
Prices are in Canadian dollars per metric ton