By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 25 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were up sharply at midday Monday, recovering from overnight declines as a rally in CBOT soybeans spilled over to provide support.
Speculators were said to be covering short positions in the US, while the funds are already net long in canola and were adding to those positions on Monday, according to participants.
Weather uncertainty heading into the growing season was also somewhat supportive, with parts of the Prairies in need of rain and others looking for warmer temperatures, said a broker.
Scale-up farmer selling did limit the advances, with some sales targets hit on the way up. Technical resistance at the C$500 per tonne mark was also seen in the most active July contract.
About 15,500 canola contracts had traded as of 10:42 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric tonne at 10:42 CDT:
