By Jade Markus, Commodity News Service Canada
WINNIPEG, December 29 – ICE Canada canola contracts were higher at midday Tuesday, as speculative trading and commercial buying kept the market supported.
Canola held firm despite Chicago Board of Trade soy markets falling sharply on Monday, while ICE markets were closed.
“That’s a sign of some strength in canola—that it’s been able to ignore that day yesterday,” said one Winnipeg-based trader.
Steady day-to-day commercial buying lent itself to firm undertones in canola, the trader said.
“When you get a big swing in a short period of time like that there’s usually some speculative involvement there,” he added.
“Someone is obviously at the moment buying canola, selling soy, and in the process they’re squeezing the spread in between the markets.”
The Canadian dollar gained ground against its US counterpart at midday on Tuesday.
Malaysian palm oil closed higher.
About 11,261 canola contracts had traded as of 11:10 CST.
Milling wheat, durum, and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 11:10 CST:
