By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 1 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Tuesday, seeing some follow-through buying interest after Monday’s rally as speculators continued to cover some of their large net short positions.
Harvest delays and quality concerns following recent snow, rain, and cold temperatures across parts of the Prairies remained supportive, according to a trader.
Continued strength in Chicago Board of Trade soybeans after Monday’s smaller-than-expected quarterly stocks report from the United States Department of Agriculture also provided spillover support for canola.
However, the forecasts are turning warmer and drier across Western Canada later this week, which tempered the upside. Large old crop supplies also continue to overhang the market.
About 18,000 canola contracts traded as of 10:33 CDT.
Prices in Canadian dollars per metric tonne at 10:33 CDT:
Price Change
Canola Nov 453.50 up 2.20
Jan 462.50 up 2.30
Mar 470.80 up 2.40
May 477.00 up 1.80
