By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 18 (MarketsFarm) – The ICE Futures canola market was at new contract highs for the second session in a row at midday Wednesday, as a rally in the Chicago Board of Trade soy complex provided spillover support.
Speculators adding to their large long positions accounted for much of the buying interest, according to a broker. Solid end user demand from both exporters and domestic crushers was also supportive.
Crush margins have widened considerably over the past month, which the was a sign that the market is still underpriced compared to competing oilseeds, the broker added.
Scale-up hedge selling and a firmer tone in the Canadian dollar put some pressure on values, tempering the advances.
About 13,000 canola contracts traded as of 10:37 CST.
Prices in Canadian dollars per metric tonne at 10:37 CST:
Price Change
Canola Jan 569.70 up 6.10
Mar 571.10 up 5.20
May 570.30 up 4.80
Jul 567.00 up 3.90
