By Phil Franz-Warkentin, Commodity News Service Canada
October 29, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at midday Wednesday, hitting their highest levels in over a month-and-a-half as a rally in the CBOT soy complex spilled over to provide support.
Soymeal was leading to the upside in the US market due to tight supplies, but soybeans and soyoil were also higher.
Speculative short-covering contributed to the advances in canola, with some buy stops hit on the way up, according to a broker.
The rally did encourage some farmer selling on the other side, which tempered the gains, according to participants.
A stronger tone in the Canadian dollar, the advancing US soybean harvest, and improving weather conditions for soybeans in Brazil were also said to be limiting the advances.
About 17,000 canola contracts had traded as of 10:47 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:47 CDT:
