By Terryn Shiells, Commodity News Service Canada
August 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were moving sharply higher at 10:43 CDT Monday, following the rally seen in Chicago soybeans and soyoil, analysts said.
Much of the rally in the US was linked to concerns about dry weather reducing yield potential for soybean crops over the next two weeks.
Canola futures also found some spillover support from the advances seen in Malaysian palm oil and European rapeseed futures overnight.
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Speculative based short covering helped to boost prices as well, as did a pickup in buying interest from crushers due to improving crush margins, brokers said.
The need to keep a weather premium built into prices, due to concerns about canola falling victim to early frosts, added to the bullish tone.
However, a pickup in farmer selling into the cash pipeline at the highs helped to limit the gains, as did expectations that the Canadian canola crop will be very large this year.
Volume was very large at midday Monday. As of 10:43 CDT, about 22,430 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following some price revisions by the Exchange after the close on Friday.
Prices in Canadian dollars per metric ton at 10:43 CDT:
