By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 20 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were up sharply at midday Tuesday, as a rally in the Chicago Board of Trade soy complex provided spillover support. Chart-based buying contributed to the advances, as speculators covered some of their large short positions.
“A resurgent bullish momentum in vegetable oil markets… is taking the lead here,” said a market analyst on the gains in canola.
A trader added that canola was actually lagging the soy complex, with more room to the upside from a crush margin standpoint.
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Concerns over harvest delays in parts of Western Canada, due to wet weather, were also somewhat supportive. However, the crop is still generally expected to be large overall.
Statistics Canada released updated production estimates this morning using satellite-based modeling that placed the canola crop at 18.3 million tonnes. That’s up from the 17.0 million estimated in August using the traditional survey-methodology, but still below what most industry participants expect for the final number.
About 17,000 canola contracts had traded as of 10:51 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
