By Phil Franz-Warkentin, Commodity News Service Canada
March 25, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Tuesday, with solid commercial demand providing underlying support.
Pakistan reportedly made a purchase of 90,000 tonnes of Canadian canola on Monday, and exporters were active buyers again on Tuesday, according to a broker. He said Canadian canola was looking cheap compared to other oilseeds, which contributed to the end user buying interest.
Light speculative demand was also supportive, as Monday’s bounce was supportive from a technical standpoint, said traders.
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Gains in the CBOT soy complex helped underpin canola as well, although the Canadian market was outperforming soybeans to the upside on Tuesday.
A firmer tone in the Canadian dollar did help slow the upward move in canola. Canada’s large supply situation and the lingering logistics issues in many areas also kept some pressure on the market.
About 14,000 canola contracts had traded as of 10:50 CDT.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 10:50 CDT:
