| Winnipeg – ICE Canada canola futures were stronger in most months Thursday morning, testing fresh contract highs once again. However, market participants cautioned that canola could easily turn mixed as values ran into some resistance to the upside.
Calls for a slightly higher start in the CBOT soy complex, along with overnight advances in the European rapeseed market, were providing some spillover support for canola, according to traders. Malaysian palm oil was untraded overnight, with the markets there closed for the Lunar New Year.
Exporter and domestic crusher demand continued to keep canola well supported, although the strong prices were starting to lead to some rationing of demand, according to traders. Farmer selling was also said to be picking up.
Statistics Canada releases an updated grain stocks report on Friday, and some positioning ahead of the report was to be expected. Traders generally expect to see tighter stocks, as of December 31, than a year ago, but the extent of the tightness remains to be seen.
The Canadian dollar was holding steady early in the day, providing little direction for the canola market.
About 540 canola contracts had traded as of 8:33 CST.
Western barley futures were untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:33 CST: |
