By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 29 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were stronger at midday Friday, as fund traders remained on the buy side on the last trading day of the month.
A broker estimated that the funds were sitting on a net long position of roughly 30,000 contracts in canola, and were still making purchases on Friday.
The need to keep some weather premiums in the futures heading into the growing season remained supportive as well, especially with persistent dryness concerns in some parts of the Prairies and excess moisture in others.
However, “the funds are running out of bullets,” said the broker, adding that chart resistance was holding to the upside in canola.
A downturn in the CBOT soy complex and strength in the Canadian dollar were also bearish for canola, with crush margins deteriorating over the past few days.
About 9,000 canola contracts had traded as of 10:38 CDT.
Milling wheat, durum, and barley futures were all untraded.
