By Terryn Shiells, Commodity News Service Canada
June 11, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved higher Tuesday morning, with much of the buying linked to oversold price sentiment, analysts said.
Continued concerns about the tight Canadian canola supply situation further underpinned values, as did the downswing in the value of the Canadian dollar.
Uncertainty surrounding the weather throughout the growing season and the need to keep a weather premium in the market also provided some underlying support.
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Canola futures also moved higher in reaction to spill over support from the gains seen in the Chicago soybean complex and Malaysian palm oil.
Positioning ahead of Wednesday’s monthly USDA crop report fuelled some of the advances seen in both soybeans and canola, participants noted.
However, reports that the Canadian canola crop is off to a good start amid beneficial weather helped to limit the declines.
Strong competition from the large South American soybean crop also put some downward pressure on the market.
As of 8:43 CDT, about 3,195 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:43 CDT:
