By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, August 27 – Canola contracts on the ICE Futures Canada platform were stronger at midday Wednesday, seeing a corrective bounce in sympathy with the outside markets.
Gains in CBOT soyoil accounted for much of the spillover buying interest in canola, according to a broker. Advances in crude oil and the North American equity markets were also bringing some speculative money back into the Canadian oilseed.
The need to keep some weather premiums in the Canadian futures helped underpin canola as well, as the market will likely need to ration demand going forward, said traders.
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However, the Canadian dollar was also stronger on Thursday, which put some pressure on canola. The firmer currency cuts into crush margins and also makes exports less attractive to international buyers.
With the overall technical trends still pointed lower, today’s bounce was also likely seen as a selling opportunity for fund traders who have put on a net short position in recent days, according to participants.
About 9,000 canola contracts had traded as of 10:29 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:29 CDT:
