By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 23, 2013
Winnipeg – ICE Canada canola futures were stronger Wednesday morning, seeing some follow-through buying interest on Tuesday’s rally.
The March canola contract moved well above the psychological C$600 per tonne level on Tuesday, which was supportive from a technical standpoint, according to participants.
Overnight gains in Malaysian palm oil futures provided further support, with tightening global vegetable oil supplies behind some of the strength there.
The need to ration Canada’s smaller canola crop underpinned the futures in Winnipeg as well, said traders.
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Weather concerns for soybean crops in South America did provide some support, although record large production is still expected from the region and the softer tone in the CBOT soy complex in early activity tempered the upside in canola.
Some profit-taking at the highs and scale-up farmer selling also served to keep a lid on the gains.
About 2,800 canola contracts had traded as of 8:50 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:50 CST:
