By Phil Franz-Warkentin, Commodity News Service Canada
December 11, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at midday Thursday, as a number of factors aligned to provide support.
The weaker Canadian dollar, gains in the CBOT soy complex, and solid end user demand were all underpinning the canola market, according to a broker. He said the charts were also looking friendly, which added to the strength in the market.
“Everything is lining up and is supportive for canola,” the broker added.
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Spreading was a feature of the activity, with the January contract trading at an inverse to the more deferred months.
On the other side, light scale-up farmer selling was slowing the upward move, although a broker said most producers were still on the sidelines ahead of the New Year.
The relatively favourable South American crop prospects, large US soybean stocks, and continued weakness in crude oil were also putting some pressure on canola values.
About 24,000 canola contracts had traded as of 10:57 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:57 CST:
