By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Aug. 31 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were stronger at midday Wednesday, as news that China would extend its deadline on implementing stricter dockage allowances gave the market a boost.
China had been set to lower the amount of dockage it would allow in Canadian canola shipments from 2.5 per cent down to one per cent on September 1, but a deal has been reached to extend that deadline as further negotiations take place.
Chart-based buying added to the gains, as the bullish reaction to the Chinese news helped boost prices above nearby resistance levels.
However, losses in the Chicago Board of Trade soy complex tempered the upside in canola, according to traders.
Seasonal harvest pressure also kept a lid on the rally, especially as most industry participants expect the actual crop to end up above the official Statistics Canada estimate.
About 22,000 canola contracts had traded as of 10:54 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
