By Phil Franz-Warkentin, Commodity News Service Canada
May 13, 2013
Winnipeg – ICE Futures Canada canola contracts were mostly higher on Monday, as bullish technicals and spillover from the advances in the CBOT soy complex provided support.
July canola jumped sharply higher on Friday. The rally was seen as supportive from a technical standpoint, according to a broker who said some additional speculative buying interest came forward on Monday. Tightening old crop supplies, the need to ration demand going forward, and spillover from the stronger tone in the Chicago soy market were also supportive for the front month.
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Meanwhile, uncertainty over planting weather across the Canadian Prairies helped underpin the new crop months.
Canadian farmers are generally expected to start making more seeding progress over the next week, but the increased chance of showers in the nearby forecasts were enough to underpin the futures, said a broker.
On the other side, ideas that canola was looking overpriced compared to other oilseeds did temper the advances.
About 12,860 canola contracts were traded on Monday, which compares with Friday when 12,830 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
