By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 12 – (MarketsFarm) – ICE Futures canola contracts were stronger at midday Wednesday, taking back Tuesday’s losses.
The gains in canola came despite a softer tone in Chicago soyoil and overnight declines in European rapeseed futures, with speculative positioning ahead of the monthly supply/demand report from the United States Department of Agriculture likely behind some of the strength in the Canadian oilseed, according to a broker. He expected some larger participants were likely buying canola and selling soyoil ahead of the report.
The USDA releases its report at 11:00 CDT, with any surprises in the data likely to dictate the direction the futures take by the close.
Wide crush margins and solid end user demand contributed to the gains in canola, as the market remains cheap relative to its product values, according to the trader.
About 22,900 canola contracts traded as of 10:31 CDT.
Prices in Canadian dollars per metric tonne at 10:31 CDT:
Canola Nov 868.00 up 8.80
Jan 875.50 up 7.90
Mar 881.90 up 7.30
May 881.90 up 5.80
