By Jade Markus, Commodity News Service Canada
WINNIPEG, December 1 – ICE Canada canola contracts were higher at midday Tuesday, but overall moving in a back-and-forth motion, as gains in Chicago Board of Trade soybeans and soymeal lent support to most contracts, but losses in soy oil capped gains.
Spreading was also a feature at midday, one analyst said, adding that most contracts were seeing routine interest from exporters.
“Nobody is really aggressive,” he said. “Rangebound trade continues—traders are certainly watching the beans to see if they get more upward momentum.”
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Fresh canola production estimates from Australia lent some support to ICE canola.
Australia’s canola production for 2015-16 is estimated at about 2.99 million tons, down from a previously forecasted 3.15 million tons.
But on the other hand, lackluster crush margins have been weighing on prices, the trader said.
“And we’re still not seeing any technical selling here. The funds are sitting on their hands because we’re not going anywhere.”
He added that the market is also seeing a lack of involvement ahead of new production numbers from Statistics Canada due out on Friday.
Malaysian palm oil closed stronger which was bullish.
About 12,776 canola contracts had traded as of 11:00 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric ton at 11:00 CST:
