By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 20, 2013
Winnipeg – ICE Canada canola futures were stronger Wednesday morning, seeing some follow-through buying interest on Tuesday’s gains.
Advances in CBOT soybeans contributed to the stronger tone in canola, according to participants. However, softness in soyoil did temper the gains. Malaysian palm oil was also a little lower in overnight activity.
Continued weakness in the Canadian dollar was another supportive factor in the canola market, said traders.
Tightening supplies and the need to ration demand going forward helped underpin canola as well. However, the upside was limited as canola is looking overpriced compared to other oilseeds, said an analyst. Profit-taking at the highs was said to be coming forward to put some pressure on values. Scale-up farmer selling was also noted.
About 4,200 canola contracts had traded as of 8:49 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:49 CST:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton