By Phil Franz-Warkentin, Commodity News Service Canada
November 12, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:52 CST Tuesday, as a rally in the CBOT soy complex provided some underlying support.
Strong global vegetable oil demand was pulling CBOT soyoil higher, which was supportive for canola as well, according to a broker. However, he noted that canola had not risen to the same extent as the product values by midsession, as the Canadian market was a little more cautious.
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The January canola contract was trading near the psychological C$500 per tonne level at midsession, but could move as high as C$505 to C$506 before running into more significant chart resistance.
While farmers remain on the sidelines for the most part, the gains were likely encouraging some farmer pricing, said traders. Canada’s record large canola crop and expectations for a good South American soybean crop were also overhanging the futures.
About 20,000 canola contracts had traded as of 10:52 CST.
Milling wheat, durum, and barley futures were untraded on Tuesday.
Prices in Canadian dollars per metric ton at 10:52 CST:
