ICE Canola Up Following Outside Oilseeds
By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, January 31 – ICE Canada canola futures were
stronger Monday morning, as commercial demand and spillover buying
interest from the advances in the outside oilseed markets provided
some support.
Exporters and domestic crushers were some of the featured
buyers in canola overnight, as the fundamentals remain bullish
overall, according to traders.
Malaysian palm oil was sharply higher in overnight trade,
while the CBOT soy complex was also being called higher to start
the North American session. Traders said the advances in the
outside oilseed markets were contributing to the firmer tone in
canola.
Scale-up farmer hedges helped temper the advances in canola,
as strong cash prices in western Canada have encouraged more
elevator deliveries, according to market participants.
Expectations for a large increase in canola acres this spring
also put some pressure on values, causing the new crop months to
lag the nearby futures to the upside, said traders.
The stronger Canadian dollar, which was trading back above
parity with its US counterpart, also limited the gains in canola.
About 2,300 canola contracts had traded as of 8:40 CST.
Western barley futures were untraded and unchanged Friday
morning.
Prices in Canadian dollars per metric ton at 8:40 CST:
Price Change
Canola Mar 602.30 up 4.70
May 611.70 up 5.20
Nov 567.90 up 0.40
Western Barley Mar 194.00 unch
May 200.00 unch
