By Dave Sims, Commodity News Service Canada
WINNIPEG, October 28 – Canola contracts on the ICE Futures Canada platform were higher at 10:55 CDT Tuesday, enjoying follow-through buying on yesterday’s gains and tracking soymeal.
“What you also have is a tremendous lack of producer selling,” said an analyst, who noted many funds had moved their November short contracts into January.
The volume was indicative of this, as the January contract was nearly three times larger than the November one.
Gains in Malaysian palm oil and European rapeseed futures also lent support to values.
The Canadian dollar was stronger which limited the gains.
The January canola contract is being targeted at C$450.00 according to the analyst. But he cautions there is danger to the downside.
“If it starts going down who’s going to buy it? It could come tumbling down,” he said.
Around 21,000 contracts had traded as of 10:55 CDT, Tuesday.
Prices in Canadian dollars per metric ton at 10:55 CDT:
