By Jade Markus, Commodity News Service Canada
WINNIPEG, November 21 – ICE Canada canola contracts were stronger at midday on Monday, propped up by advances in the Chicago Board of Trade soybean market.
“We’ve got some speculative money ticking in the beans again, which they’ve been doing on and off for a while now,” said one Winnipeg-based analyst.
He added that canola is lagging soybeans to the upside, as investors are cautiously watching soy’s gains. Long-position liquidation was also a feature.
The unfinished Western Canadian harvest added to the market’s upside, the analyst said.
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“We’re still very uncertain about how much of it is left out there. We’re guessing it could be even eight or nine, or even ten per cent. That’s quite a bit.”
Strong commercial demand reported by market watchers added to the bullish tone.
However, the Canadian dollar gained ground against its US counterpart on Monday, which also capped canola’s strength.
About 7,004 contracts had traded as of 10:25 CST.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:25 CST:
