By Phil Franz-Warkentin, Commodity News Service Canada
May 20, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 11:04 CDT Tuesday, taking some direction from the gains in CBOT soybeans.
Canadian markets were closed Monday, while the US markets remained open, and much of today’s activity was tied to “playing catch-up” with soybeans, according to participants.
The new crop canola contracts outpaced the nearby July contract to the upside, with adjustments to the July/November spread a feature of the activity. After moving to an inverse last week, a trader said the spreads had become overdone and should move back to a carrying charge.
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Slow farmer selling, as producers concentrate on spring seeding, was also supportive. The weaker Canadian dollar was underpinning the futures as well.
However, old crop canola supplies remain large which limited the upside potential in the market. Losses in CBOT soyoil also weighed on values.
About 9,000 canola contracts had traded as of 11:04 CDT, with the July/November spread a feature of the activity.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 11:04 CDT:
