By Phil Franz-Warkentin, Commodity News Service Canada
April 29, 2014
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, after trading to both sides of unchanged in overnight activity.
The biggest gains were in the nearby May contract, where the move was exaggerated by participants covering short-positions and exiting the front month before it expires.
For the more active contracts, spillover from the advances seen in the CBOT soy complex provided some underlying support, according to traders.
Bullish technical signals, solid end user demand, and ideas that canola remains cheap compared to most other oilseeds were also supportive, said participants.
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However, farmer selling was said to be picking up as prices rise and cash bids also show some improvement. The firmer tone in the Canadian dollar, the country’s burdensome supply situation and ongoing expectations for another big crop this summer were overhanging the market as well.
About 3,500 canola contracts had traded as of 8:46 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 8:46 CDT:
