By Phil Franz-Warkentin, Commodity News Service Canada
February 3, 2015
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at midday Tuesday, as a rally in the CBOT soy complex spilled over to provide some support.
Index funds were “throwing money at everything” in the US grains and oilseeds markets, and the resulting gains in soybeans were encouraging some speculative buying interest in canola as well, according to a broker.
Advances in European rapeseed futures, steady end user demand, and relatively favourable chart signals also provided some underlying support for canola.
However, the Canadian dollar was showing significant strength on Tuesday, moving up by over three-quarters of a cent relative to its US counterpart, which tempered the upside potential in canola.
Scale-up farmer selling, as more canola starts to move in Western Canada, also served to put some pressure on the market, according to the broker.
About 8,700 canola contracts had traded as of 10:46 CST.
Milling wheat, durum and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:46 CST:
