By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 9 – Canola contracts on the ICE Futures Canada platform were stronger at midday Wednesday, seeing some follow-through buying interest after Tuesday’s corrective bounce.
Spreading against CBOT soybeans contributed to the gains in canola, according to a broker who said some speculative participants were playing the spreads between the two markets by selling soybeans and buying canola.
Reports of frost in parts of Western Canada were also somewhat supportive, although the temperatures likely weren’t low enough to cause serious damage.
On the other side, looming harvest pressure, a firmer Canadian dollar, large old crop stocks, and bearish chart signals all served to limit the upside potential, according to participants.
About 9,500 canola contracts had traded as of 10:49 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:49 CDT:
