By Dave Sims, Commodity News Service Canada
WINNIPEG, December 3 – ICE Canada canola contracts were higher Thursday morning, taking strength from gains in vegetable oil and speculative trade.
Malaysian palm oil, CBOT soyoil and European rapeseed futures were both higher which contributed to the gains.
Traders are adjusting positions ahead of tomorrow’s production estimates by Statistics Canada. While many expect tomorrow’s report to show a larger canola crop than initially reported, the trade guesses at this point vary significantly.
However, CBOT soybeans were weaker which dragged on values.
Crop conditions in South America have improved with timely rains, which was bearish.
Profit taking could be a feature of today’s activity as investors look for bargains ahead of tomorrow’s report.
About 6,000 canola contracts had traded as of 8:50 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:50 CST:
