By Dave Sims, Commodity News Service Canada
WINNIPEG, March 5 – Canola contracts on the ICE Futures Canada platform were mostly stronger at 10:45 CST Thursday, as traders bought futures on ideas yesterday’s losses were overdone.
The Canadian dollar was weaker against its American counterpart which also lent support to canola values.
Soymeal was stronger which helped to underpin the market.
However, US soybeans and soyoil were lower which limited the gains.
One analyst said he thought today’s gains wouldn’t last.
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“We’re losing about four dollars on the crush value today, we lost a bit yesterday, so we’re higher than we should be on that metric,” said the analyst, adding spreads were gradually giving up any inverted premiums they had.
Losses in Malaysian palm oil and European rapeseed futures were also bearish for the canola market.
The Brazilian crop, which is expected to be record large, is gradually trickling onto the market, according to a report. A brief few days of roadblocks and demonstrations by Brazilian truckers appears to be over, having caused minimal disruption.
Spring road bans throughout the Prairies will likely keep some producers from making deliveries.
Around 9,000 contracts had traded as of 10:45 CST, Thursday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:
