By Dave Sims, Commodity News Service Canada
WINNIPEG, August 4 – Canola contracts on the ICE Futures Canada platform were higher at 10:40 CDT Tuesday, taking strength from the US soy complex.
Although recent rains have improved crop conditions there are still significant concerns about the state and volume of the 2015/16 crop.
Today’s gains happened after values rebounded in the wake of profit-taking on the shorts by speculators, a trader said.
He expected a lot of trading in the near-future would be jerky, up-and-down action due to the looming USDA’s World Agricultural Supply and Demand Estimates Report (WASDE) due out on August 12.
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“There is still a lot of uncertainty about how many acres they’re going to trim in the US and how much yield,” explained the trader.
However, traders were reluctant to pushes prices too high ahead of the USDA report, which capped the upside.
Traders have also taken the weather premium out of the market, he said.
Farmer selling is expected to increase going forward, according to a report.
Around 8,000 contracts had traded as of 10:40 CDT, Tuesday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
