By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Sept. 5 (CNS Canada) – ICE Futures Canada canola contracts were holding onto small gains at midday Tuesday, as a rally in Chicago Board of Trade soybeans provided spillover support.
Gains in crude oil accounted for some of the strength in soybeans that spilled into the Winnipeg market, according to a trader. However, the Canadian dollar was also rising relative to its US counterpart, which tempered the upside for canola.
“Early harvest selling is also keeping a lid on the (canola) market,” added the trader noting that yield reports are generally beating earlier expectations.
However, there are still many areas of concern across the Prairies. Solid end user demand and the need to ration some of that demand going forward also provided underlying support.
Statistics Canada releases its ending stocks report on Wednesday, September 6, and positioning ahead of the data accounted for some of the activity.
About 8,900 canola contracts had traded as of 10:38 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
