By Phil Franz-Warkentin, Commodity News Service Canada
December 22, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at midday Monday, as gains in CBOT soybeans and a weaker Canadian dollar provided support.
Speculators were noted buyers, as prices tested nearby resistance and fund traders added to their long positions.
The Canadian dollar was trading below 86 US cents, which is supportive for crush margins and also makes exports more attractive.
The strength in the market was thought to be encouraging some light farmer selling, as improving cash bids in Western Canada triggered some sales. However, traders noted that most producers remain on the sidelines for the time being as they await the New Year.
The relatively favourable South American crop prospects, large US soybean stocks, and continued weakness in crude oil did put some pressure on canola values, limiting the advances.
About 12,000 canola contracts had traded as of 10:58 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:58 CST:
