By Phil Franz-Warkentin, Commodity News Service Canada
January 12, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were higher at midday Tuesday, correcting from yesterday’s losses as supportive technical signals underpinned the market.
Speculative fund participants were noted buyers adding to their long positions, according to a broker. “A little bit of spec interest in this market seems to be the feature today,” he said.
Steady demand from domestic crushers provided some underlying support as well, although the broker noted that basis levels were widening out across the Prairies.
A softer tone in CBOT soybeans and a stronger Canadian dollar did serve to limit the upside potential in canola, according to participants. A broker cautioned that canola could eventually turn lower by the close, given those outside market factors.
The large US soybean supply situation and relatively favourable South American growing conditions were also overhanging the market.
About 10,500 canola contracts had traded as of 10:47 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:47 CST:
