By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 11 (MarketsFarm) – The ICE Futures canola market was stronger Friday morning, testing upper resistance as traders reacted to activity in the Chicago Board of Trade soy complex.
Solid export demand gave soybeans a boost, which provided the catalyst for the speculative buying in canola, according to participants.
Demand from both exporters and domestic crushers is also strong for canola, with reports of improving basis levels in parts of the Prairies as end users look to secure supplies.
However, seasonal harvest pressure did temper the upside.
The United States Department of Agriculture releases updated supply/demand estimates at 11:00 CDT, and any surprises in the data should dictate where the markets move later in the day. Statistics Canada is also set to release updated production estimates on Monday, Sept. 14.
About 5,500 canola contracts had traded as of 8:50 CDT.
Prices in Canadian dollars per metric ton at 8:50 CDT:
Price Change
Canola Nov 513.60 up 3.80
Jan 520.90 up 3.60
Mar 526.80 up 3.50
May 529.00 up 2.40
