By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 6, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small gains at 10:50 CST Monday, finding some modest support from the firmer tone seen in CBOT soybeans.
Positioning ahead of the USDA’s monthly supply/demand report on Friday and Thursday’s weekly US export report accounted for some of the speculative short-covering in soybeans, according to a broker. He said canola was still cheap compared to soybeans, but had gained back about C$30 per tonne over the past week.
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Weakness in the Canadian dollar helped underpin canola as well, according to participants.
However, losses in CBOT soyoil and Malaysian palm oil did temper the advances in the lightly traded canola market.
Canada’s record large canola crop and the logistics issues moving it continued to overhang the market as well. Favourable crop prospects for soybeans in South American were also weighing on the oilseeds in general, said a broker.
About 3,800 canola contracts had traded as of 10:50 CST.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 10:50 CST:
