By Dave Sims, Commodity News Service Canada
WINNIPEG, October 27 – Canola contracts on the ICE Futures Canada platform were higher at 10:45 CDT Tuesday, taking back some of the ground they lost in yesterday’s sell-off, in sympathy with the US soy complex.
The Canadian dollar was roughly half a cent lower compared to its US counterpart which made canola more attractive to international buyers while crushers were also showing good demand.
Malaysian palm oil was also higher which underpinned the market.
The January/March spread was quite active while the November contract had slowed to a crawl, a trader said.
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“Spread activity is slowing down as liquidation mode in November is almost complete,” he explained, adding that the open interest continued to drop off sharply.
Growing conditions for the Brazilian soybean crop were improving with rain, which was bearish.
There are continued ideas the canola crop is much larger than previously forecast, which was bearish.
US soyoil was also lower which dragged on canola values.
Around 16,000 contracts had traded as of 10:45 CDT,
Tuesday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
Price Change
Canola Nov 468.00 up 2.00
Jan 477.70 up 3.00
Mar 484.30 up 4.20
Milling Wheat Dec 235.00 unch
Mar 240.00 unch
Durum Dec 330.00 unch
Mar 335.00 unch
Barley Dec 185.00 unch
Mar 187.00 unch
