By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 28 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Wednesday, with the largest gain in the nearby July contract as investors were being forced to pay up to exit the front month.
The July/November spread was a feature of the activity, as it widened to over C$40 per tonne at one point.
Tight old crop supplies, gains in Chicago Board of Trade soybeans, and improving nearby chart signals all contributed to the advances in canola, according to participants.
However, values were well off their highs by midsession, as CBOT soyoil turned lower. Strength in the Canadian dollar, which was trading at about 76.5 US cents, also tempered the advances.
Statistics Canada releases its updated acreage estimates on Thursday, June 29, while the USDA’s acreage numbers will be out on Friday, June 30. Positioning ahead of the two reports could lead to some volatility in the futures.
About 16,000 canola contracts had traded as of 11:00 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
