By Phil Franz-Warkentin, Commodity News Service Canada
October 17, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains 10:45 CDT Thursday, as the market saw some consolidation near the high end of its recent trading range.
Advances in CBOT soybeans helped underpin the canola market as well, according to participants. However, the softer tone in CBOT soyoil, together with overnight losses in Malaysian palm oil and European rapeseed futures, limited the upside potential.
Solid export and domestic crusher demand remained supportive for canola, with the oilseed still looking attractively priced compared to other options.
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On the other side, Western Canadian farmers grew a record large canola crop this year, making any advances a good selling opportunity, according to traders traders.
The firmer tone in the Canadian dollar, which was up by over a third of a cent relative to its US counterpart, also tempered the gains in canola as the firmer currency cuts into crush margins.
About 20,000 canola contracts had traded as of 10:45 CDT, with November/January spread a feature as participants roll out of the front month.
Milling wheat, durum, and barley futures were untraded on Thursday.
Prices in Canadian dollars per metric ton at 10:45 CDT:
