By Glen Hallick, MarketsFarm
WINNIPEG, Sept. 16 (MarketsFarm) – ICE Futures canola contracts were stronger at midday Monday, with speculators adjusted their positions in heavy volumes.
“We believe it’s spec short covering,” commented a Winnipeg-based trader, noting that Commitment of Traders reported small specs were almost at 100,000 contracts.
He said that soyoil on the Chicago Board of Trade was “on fire” with bids currently well in excess of 60 United States cents per pound, which was supportive of canola.
The Prairie harvest was picking up steam the trader said.
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According to the respective weekly crop reports, the overall harvest in Manitoba was 40 per cent complete as of last week with Saskatchewan at 18 and Alberta at 16 per cent. However, each Prairie province was behind pace, but the trader said the good weather will help turn the crops.
“My phone isn’t ringing because everyone is in a cab or trying to get into a cab to get going,” he remarked.
The trader said crush margins have been very good as farmers were still reluctant to sell.
Approximately 17,500 canola contracts were traded as of 10:39 CDT.
Prices in Canadian dollars per metric tonne at 10:39 CDT:
Price Change
Canola Nov 453.90 up 4.10
Jan 462.00 up 4.00
Mar 470.00 up 4.20
May 475.50 up 3.90
