By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 10 (MarketsFarm) – The ICE Futures canola market was posting solid gains at midday Wednesday, showing independent strength in the face of losses in many outside markets.
“Somebody is buying back positions,” said an analyst, noting that the advances in canola were “a long-awaited adjustment that needed to happen… but will have a limited shelf life.”
Tighter-than-expected canola stocks reported by Statistics Canada on Tuesday also provided support, a trader added, noting that demand will likely need to be rationed going forward. Total Canadian canola stocks as of March 31 came in at 5.95 million tonnes. That was up from the previous year’s level of 5.16 million but well off the five-year average of 8.76 million.
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Chicago soyoil, Malaysian palm oil and European rapeseed futures were all weaker on the day, with crude oil also lower.
The United States Department of Agriculture releases its latest supply/demand estimates on Friday, with positioning ahead of that report likely to encourage speculative positioning over the next few days.
About 24,200 canola contracts traded as of 10:45 CDT.
Prices in Canadian dollars per metric tonne at 10:45 CDT:
Canola Jul 744.70 up 6.60
Nov 717.60 up 3.80
Jan 722.00 up 4.50
Mar 724.40 up 3.70
