By Phil Franz-Warkentin, Commodity News Service Canada
November 10, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains Monday morning, but activity was light and choppy as participants were awaiting the release of the USDA’s monthly supply/demand report at 11:00 CST.
Gains in the CBOT soy complex ahead of the data did provide some spillover support for canola, according to participants. Malaysian palm oil and European rapeseed futures were also up in overnight activity.
Good end user demand from both exporters and domestic crushers, together with a lack of significant farmer selling, contributed to the firmer tone in canola.
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However, the record large US soybean production prospects and relatively favourable South American crop conditions did limit the upside potential in canola, according to traders.
Chart resistance was also holding to the upside, with the January contract facing a nearby target around C$440 per tonne.
The Canadian dollar was holding relatively steady on Monday, but had rallied sharply relative to its US counterpart on Friday.
About 5,500 canola contracts had traded as of 10:40 CST.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:40 CST:
