By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Nov. 27 – Canola futures in the ICE Canada trading platform were chopping around both sides of unchanged amid directionless trade at mid-session Thursday. Traders were waiting for the US markets to re-open before making any big moves, analysts said.
The US markets are closed for Thanksgiving, and will re-open for a shortened trading day Friday morning.
Canola has every reason to move higher, as it is very cheap relative to the Chicago soybean market, according to a broker, who also noted canola has lagged soybeans by C$15 a tonne this week.
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Support is also coming from the sharply lower Canadian dollar, which made canola more attractive to crushers and exporters.
Solid commercial demand for Canadian canola and continued slow farmer selling were also bullish.
Though, weakness in outside oilseeds, including European rapeseed and Malaysian palm oil overnight, was bearish. Crude oil values were also tumbling on Thursday, after OPEC announced it won’t cut production to support prices.
The large US soybean crop, and generally good conditions for the South American bean crop were also undermining the market.
As of 10:45 CST Thursday, about 2,990 contracts had traded.
Milling wheat and durum futures were untraded and unchanged. Barley futures saw 50 contracts traded at higher values.
Prices in Canadian dollars per metric ton at 10:45 CST:
