By Phil Franz-Warkentin, Commodity News Service Canada
December 8, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were up at midday Monday, recovering from overnight losses as gains in CBOT soybeans spilled over to provide some support.
With no fresh fundamental news to speak of, a canola broker said the turn higher was likely tied to fund buying. “What their motivation is, I’m not sure . . . but it could just be the continuation of a program they started a number of months ago,” he said.
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A slightly softer tone in the Canadian dollar and a continued lack of significant farmer selling was also supportive, according to the broker.
Canola remains attractively priced compared to other oilseeds as well, but exporters and domestic crushers were thought to be relatively well covered for the time being and not chasing the market higher.
After rallying on Friday, ideas that the gains were starting to look overdone did temper the advances. The upward revision to the Canadian canola production in last week’s Statistics Canada report was also limiting some of the end user demand.
About 21,000 canola contracts had traded as of 10:48 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:48 CST:
