By Terryn Shiells, Commodity News Service Canada
August 15, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:33 CDT Thursday, with the November contract breaking above the key resistance level of C$500 per tonne.
Spill over support from the advances seen in Chicago soybeans and soyoil helped to fuel the rally seen in canola futures.
Overnight advances in Malaysian palm oil and European rapeseed futures were also supportive, as was the downswing in the value of the Canadian dollar.
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Some of the strength in canola futures was also linked to rumours of fresh export demand, brokers said, though nothing has been confirmed.
Tight old crop supply concerns added to the bullish tone, as did worries about slow canola crop development across the Prairies.
Buy stops were hit when the market reached the C$500 per tonne level, but a pick-up in farmer selling at that price was limiting the gains, analysts noted.
Forecasts calling for beneficial warmer weather across Western Canada over the next few days also tempered the gains, as hotter conditions could help speed up crop development.
As of 10:33 CDT, about 8,510 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged after wheat prices saw some revisions by the Exchange after the close on Wednesday.
Prices in Canadian dollars per metric ton at 10:33 CDT:
