By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 22, 2013
Winnipeg – ICE Canada canola futures were higher Tuesday morning, breaking above nearby resistance as gains in the US soybean market spilled over to provide support.
US markets were closed Monday for the Martin Luther King Jr. holiday, and dry weather conditions in South America over the long weekend were behind some of the buying interest in soybeans when trade resumed. Market participants are counting on a large South American soybean crop to make up for tightening US supplies, and any weather issues in Argentina or Brazil were supporting the oilseeds in general – including canola.
Malaysian palm oil and European rapeseed futures were also higher in overnight activity.
The March canola contract moved past the psychological C$600 per tonne level in early activity, which encouraged some additional chart-based buying, according to participants.
About 7,400 canola contracts had traded as of 8:47 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:47 CST:
