By Phil Franz-Warkentin, Commodity News Service Canada
January 14, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed at midday Wednesday, although the most active nearby months were holding onto small gains as fund traders remained on the buy side and values tested upside resistance.
The strength in canola came despite losses in CBOT soybeans, with some of the activity in the Canadian market tied to speculators adjusting their positions by selling beans and buying canola, according to participants.
Steady end user demand and a lack of significant farmer selling remained supportive as well.
However, a trader noted that the early gains in canola could be tied to participants “buying bullets,” with the intent to turn to the sell side and book profits by the close.
The large US soybean supply situation and relatively favourable South American growing conditions were also overhanging the market.
About 14,500 canola contracts had traded as of 10:52 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CST:
