By Phil Franz-Warkentin, Commodity News Service Canada
September 19, 2013
Winnipeg – ICE Canada canola contracts were posting small gains Thursday morning, taking some direction from the firmer tone in CBOT soybeans and soyoil overnight.
Uncertainty over the size of the US soybean crop, as harvest operations are still a couple of weeks away, remained the major supportive factor in soybeans – and in turn, canola.
Solid end user demand was also underpinning the Canadian futures, with canola said to be looking attractively priced at current levels.
However, the ongoing harvest of a record large crop in Western Canada did temper the upside potential in canola, with steady farmer hedges limiting the upside, according to participants.
Strength in the Canadian dollar, which rallied on Wednesday in response to an announcement from the US Federal Reserve, also served to put some pressure on canola values.
About 6,000 canola contracts had traded as of 8:56 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:56 CDT:
