By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Dec. 16 – Canola futures on the ICE Canada trading platform were mixed on Tuesday, with the January/March spread the feature of the activity.
Traders were covering their short positions in the January contract ahead of the holidays, and ahead of its expiry, according to analysts.
Some spillover pressure came from the declines in outside oilseed markets, including Chicago soybeans and soyoil futures.
Generally favourable conditions for South American soybeans, the large US bean crop and some profit taking on recent gains also weighed on canola.
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On the other side, the Canadian dollar remains below the 86 cents US mark, which was supportive.
Continued strong demand for canola, and slow farmer selling as they wait until the New Year, were also bullish. The market remains at an inverse, indicating strong nearby demand for the commodity.
Chinese delegates are meeting with US officials today, and are expected to announce their plans on what US products to purchase in 2015, which could “throw some curve balls” into the market, a Winnipeg-based broker said.
As of 10:40 CST Tuesday, about 15,100 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST:
