By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 12 (MarketsFarm) – ICE Futures canola contracts were posting small gains Tuesday morning, although activity was thin and choppy with little supportive news to drive the move higher.
“Canola is doing its own thing,” said a Winnipeg-based trader.
He linked the gains to short-covering by small speculators and a slowdown in farmer selling, with increased export demand another possibility.
However, losses in Chicago Board of Trade soyoil and a firm tone in the Canadian dollar meant that crush margins were down sharply, which was likely limiting any demand from domestic processors. The thin volumes were also seen as a sign that larger fund traders were keeping to the sidelines.
CBOT soybean futures were holding near unchanged at midday, but had posted large losses on Monday when the canola market was closed for Remembrance Day.
About 6,000 canola contracts traded as of 10:36 CST.
Prices in Canadian dollars per metric tonne at 10:36 CST:
Price Change
Canola Jan 464.20 up 0.90
Mar 473.90 up 1.00
May 482.40 up 1.20
Jul 489.70 up 1.30
