By Terryn Shiells, Commodity News Service Canada
August 12, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:23 CDT Monday, following Chicago soybeans, as they experienced a short covering rally ahead of this morning’s USDA report, analysts said.
The USDA will release its first surveyed crop report of the season at 11:00 CDT this morning, which will likely determine market direction for both soybeans and canola for the rest of the day.
Spill over support from the gains seen in Malaysian palm oil and European rapeseed futures were also bullish for canola.
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A strong demand outlook for 2013/14 and some concerns about cooler weather slowing crop development in western Canada also underpinned values.
However, ideas that the Canadian canola crop will be really large if it can avoid frosts this fall were bearish, and limited the upside in canola.
Technical weakness also tempered the advances, brokers noted.
Activity was on the light side at midday Monday, as traders were on the sidelines ahead of the USDA report. As of 10:23 CDT, about 3,335 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:23 CDT:
