By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 28 (MarketsFarm) – The ICE Futures canola market was holding steady in the most active months at midday Tuesday, as solid demand and spillover from Chicago Board of Trade soyoil provided underlying support.
Concerns that wet fields may push back spring seeding in many areas of Western Canada added to the steady tone.
However, strength in the Canadian dollar and losses in CBOT soybeans put some pressure on values.
Spread traders who are long canola and short soybeans were likely behind some of the activity, as they were propping up the canola market to support their positions, according to a broker.
“Unfortunately, canola is becoming very expensive,” the broker added.
About 7,000 canola contracts traded as of 10:43 CDT.
Prices in Canadian dollars per metric tonne at 10:43 CDT:
Price Change
Canola May 462.40 up 3.40
Jul 461.20 up 0.10
Nov 469.00 dn 0.10
Jan 475.30 dn 0.10
