By Phil Franz-Warkentin, Commodity News Service Canada
January 9, 2013
WINNIPEG – ICE Canada canola futures were chopping around both sides of unchanged Wednesday morning, although most months were holding onto small gains. Uncertainty ahead of Friday’s USDA supply/demand report kept prices from moving too far one way or the other.
A firmer tone in CBOT soyoil did lend some underlying support to canola, according to participants. Malaysian palm oil and European rapeseed futures were also showing some strength.
Solid end user demand, a continued lack of significant farmer selling, and the need to ration the ever-tightening supplies in western Canada did provide underlying support as well, according to traders.
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However, expectations for a large South American soybean crop continue to overhang the oilseed markets, despite nearby weather forecasts that are turning a little drier.
Expectations that the USDA will raise its soybean production and stocks estimates in Friday’s report were also said to be keeping some caution in the futures markets.
About 1,400 canola contracts had traded as of 8:52 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:52 CST:
