By Dave Sims, Commodity News Service Canada
WINNIPEG, February 10 – Canola contracts on the ICE Futures Canada platform were mostly higher at 10:20 CST Tuesday, as traders positioned themselves ahead of today’s USDA crop report which is due to be released at 11:00 CST.
“Canola will start to get busy because we’re very close to having the funds spread out of March into May,” said an analyst, who noted funds have been quiet over the past two weeks.
However, the trader said most fund operators will likely want to see the May canola contract creep below US$440 a tonne before they pull the trigger on such a move.
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“Even if the report is bearish the Canadian dollar is down 50 points so it will take major selling. Everyone is pretty well hedged,” he said.
The Canadian dollar was sharply weaker against its American counterpart which helped make canola more attractive to crushers and exporters.
Malaysian palm oil was higher which underpinned the market.
However, weakness throughout the US soy complex was also bearish for values while the large crop in South America also added some pressure.
Around 6,400 contracts had traded as of 10:20 CST, Tuesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:20 CST:
