By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Oct. 20 – Canola contracts on the ICE Futures Canada platform were narrowly mixed at midday Tuesday, with a softer tone in the nearby November contract and gains in the more deferred positions.
Adjustments to the November/January spread were a feature, as participants were busy rolling out of the front month, according to a trader.
Gains in CBOT soyoil did provide some underlying support for canola. Chart support was also holding to the downside, as canola held within its well established range. The rising production ideas for both the US soybean crop and the Canadian canola crop were also somewhat bearish.
About 25,000 canola contracts had traded as of 10:47 CDT. In addition to the active spread trade, a large portion of the volume was also tied to exchange of futures for swaps (EFS’), with “someone doing something on the cash side,” according to a trader.
Milling wheat, durum, and barley were all untraded.
