By Dave Sims, Commodity News Service Canada
WINNIPEG, March 28 – Canola contracts on the ICE Futures Canada platform were stronger at 10:40 CDT on Monday, taking strength from gains in soyoil, large fund short-covering and some technical trading.
“Funds are still short on canola so they’re scrambling, tying to cover,” noted a Winnipeg-based trader.
Soybeans are higher which contributed to the advances.
Traders are also starting to put a weather premium into the market ahead of seeding, according to a report.
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However, the Canadian dollar is stronger relative to its US counterpart, which made canola less attractive to out-of-country buyers.
“Farmer selling is picking up and will likely continue to pick up on this bounce as we start to hit targets in the country from growers with pricing orders,” said the trader, who also noted that crush margins were backing up slightly.
On April 1st China is scheduled to lower the amount of dockage it accepts on shipments of canola, which has thrown some uncertainty into the market, an analyst said.
The advancing South American soybean harvest was also bearish.
About 7,800 canola contracts had traded as of 10:40 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
