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ICE Canola Higher With US Soy Complex

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Published: August 7, 2015

By Dave Sims, Commodity News Service Canada

WINNIPEG, August 7 – Canola contracts on the ICE Futures Canada platform were higher at 10:45 CDT Friday in light-volume activity, taking strength from the US soy complex.

“The spread activity continues to be abnormally light with a little bit of November/January action going on,” a trader noted.

Although recent rains have alleviated dry conditions across parts of the Prairies there are still concerns about the lateness of the crop, which was supportive.

Traders continue to position themselves ahead of next week’s USDA World Agricultural Supply and Demand Estimates

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report (WASDE) which is due out on August 12. There is already speculation that report will show lower-than-expected US soybean acreage.

However, the Canadian dollar was higher relative to its US counterpart which made canola less attractive on the international market.

Losses in Malaysian palm oil limited the gains.

The longer-term technical bias is to the downside, according to a report.

Around 3,600 contracts had traded as of 10:45 CDT, Friday.

Milling wheat, barley and durum were all untraded and unchanged.

Prices in Canadian dollars per metric ton at 10:45 CDT:

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