By Phil Franz-Warkentin, Commodity News Service Canada
December 2, 2014
Winnipeg – Canola contracts on the ICE Futures
Canada platform were steady to higher at midsession Tuesday, as
improving end user demand, a weaker Canadian dollar, and positioning
against soybeans all provided support.
While losses in the CBOT soy complex were putting some pressure
on canola, the Canadian market managed to see some independent
strength. A broker said canola had been looking oversold compared to
soybeans, and due for a correction. As a result, speculators who were
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selling soybeans.
Domestic crusher demand was another supportive feature, as
recent weakness in canola helped crush margins improve. The weaker
Canadian dollar, which was down by about half a cent relative to its
US counterpart, was also supportive for crush margins.
Statistics Canada releases updated production estimates on
Thursday, December 4, and positioning ahead of the report was expected
to be a feature over the next few days.
About 15,000 canola contracts had traded as of 10:46 CST.
Milling wheat, durum, and barley were all untraded and
unchanged.
Prices in Canadian dollars per metric ton at 10:46 CST:
