By Phil Franz-Warkentin, Commodity News Service Canada
September 2, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains at midday Monday, but were lagging the US soy complex with spreading between the two markets behind some of the relative weakness.
Solid advances in CBOT soybeans, together with a weaker tone in the Canadian dollar were supportive for canola. However, the Canadian oilseed was lagging the US market by roughly C$6 per tonne, according to a broker.
Speculators selling canola and buying soybeans put some pressure on the market, said the broker. He thought domestic crushers may also be cashing out on spreads they put on earlier in the year when crush margins were considerably higher.
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On the other side, a lack of significant farmer selling remained somewhat supportive, said participants.
There is also still enough uncertainty over the size of this year’s canola crop to keep some weather premiums in the futures.
About 15,000 canola contracts had traded as of 10:50 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
