By Dave Sims, Commodity News Service Canada
WINNIPEG, March 29 – Canola contracts on the ICE Futures Canada platform were higher at 10:40 CDT on Tuesday, following advances in Chicago Board of Trade soybeans and soyoil.
Speculation is swirling that China may not go ahead with plans to lower the amount of dockage it accepts on imports of canola. The original plan called for the changes to go into effect on April 1 but that may be pushed back until September, according to reports.
Malaysian palm oil advanced for the third straight day, which buoyed vegetable oil markets.
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Demand from crushers and exporters is solid, according to a trader in Winnipeg.
However, the Canadian dollar was slightly stronger relative to its US counterpart, which made canola less attractive to out-of-country buyers.
Canola’s front-month contract seems to be nearing some resistance on the charts, the trader noted.
“So C$480 (per tonne) is the number in the nearby charts for the May canola; but it’s not tremendously sharp resistance, there’s pockets of resistance all through this area,” he said.
The advancing South American soybean harvest was bearish for values.
About 15,925 canola contracts had traded as of 10:40 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
