By Phil Franz-Warkentin, Commodity News Service Canada
April 16, 2014
Winnipeg – ICE Canada canola contracts were stronger Wednesday morning, seeing some follow-through buying interest after moving above nearby resistance on Tuesday.
The move above C$470 per tonne in the nearby May contract on Tuesday was supportive from a chart standpoint, and speculators remained on the buy side on Wednesday.
Gains in CBOT soybeans, Malaysian palm oil and European rapeseed futures all provided some spillover support for canola as well. The fact that canola remains cheap compared to other oilseeds and the need to keep some weather premiums in the futures ahead of spring seeding were also underpinning the market, according to participants.
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On the other side, Canada’s burdensome supply situation and the ongoing expectations for another big crop this summer tempered the upside potential. Ideas that the gains were starting to look overdone also put some pressure on values.
About 2,000 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:44 CDT:
