By Jade Markus, Commodity News Service Canada
WINNIPEG, March 9 – ICE Canada canola contracts were slightly stronger in sluggish trading at midday on Wednesday.
Canola has the potential for additional upside before Wednesday’s close, according to one Winnipeg-based trader.
“Canola always seems to start sort of sluggish, lagging, lagging, lagging, and then it catches up and firms up late in the day,” the trader said.
If gains in Chicago Board of Trade soy oil hold then canola will likely track those gains.
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US traders are watching an upcoming United States Department of Agriculture (USDA) world agricultural supply and demand estimates due out at 11:00 CST, but the trader added that he expects it will have a limited effect on soy oil.
“A report at this time of year shouldn’t show anything, but it’s quite likely that a lot of those numbers are going to appear to be a little negative, but it’s not really fresh news by any means.”
Strength in Malaysian palm oil, which closed stronger overnight, will keep the CBOT soy oil market underpinned, the trader said.
“As long as the Canadian dollar doesn’t push a lot higher here canola should be well-supported.”
About 4,622 contracts had traded as of 10:25 CST.
Milling wheat, durum and barley futures were all untraded and
Prices in Canadian dollars per metric tonne at 10:25 CST:
