By Dave Sims, Commodity News Service Canada
WINNIPEG, August 9 – Canola contracts on the ICE Futures Canada platform were stronger at 10:30 CDT on Tuesday, due to speculator covering and gains in US soy.
“We might be seeing some signs today that some spec shorts in canola are doing some covering which would make sense,” said a Winnipeg-based trader. “They have some good profits built up.”
Tight supplies of Malaysian palm oil helped push the market higher as well, according to a report.
The Chicago Board of Trade soy complex was also higher, which was bullish for canola.
Wet weather across parts of Western Canada has put a weather premium into the market.
However, the Canadian dollar was stronger relative to its US counterpart, which limited the upside.
Forecasts calling for large supplies of North American oilseeds were bearish for values.
European rapeseed futures were also lower.
About 7,700 canola contracts had traded as of 10:30 CDT.
Milling wheat, barley and durum were untraded and unchanged.
