By Jade Markus, Commodity News Service Canada
WINNIPEG, March 7 – ICE Canada canola contracts were stronger at midday on Monday, tracking gains in Chicago Board of Trade (CBOT) soy oil.
Canola prices were higher with spillover support from CBOT markets, but still lagging behind soy oil’s gains as traders continue to lean on prices.
“It’s struggling a little bit at times to hold strength with the soy markets,” said one Winnipeg-based trader.
“Probably traders who are spread short are taking every chance they can get to just pressure the market.”
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The trader added that the market was overdone last week, and now has room to recover further, despite bearish trader influences.
“Soy markets are still showing a little bit of firmness, so there’s probably still room for canola to come back from that big sell-off.”
Last week’s sell-off took farmer-selling out of the market, as current prices are not appealing.
“They may come back in if we can kick up another five or ten dollars.”
The Canadian dollar was stronger against its US counterpart at midday on Monday, which put some pressure on canola prices.
Malaysian palm oil closed stronger.
About 4,244 contracts had traded as of 10:35 CST.
Milling wheat, durum and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:35 CST:
