By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, April 28 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were stronger at midday Thursday, with fund buying a feature.
“Fund money continues to circulate in these markets, but beyond that there’s no rational reason (for the gains),” said a Winnipeg-based broker.
He said gains in CBOT soybeans contributed to the firmer tone in canola, but the Canadian oilseed was actually outperforming the US market to the upside given when factoring in the bearish influence on crush margins of the rising Canadian dollar and losses in soyoil.
“Crush margins have fallen off, but are still respectable,” said the broker.
The need to keep some weather premiums in the futures heading into the growing season was also somewhat supportive, according to participants.
About 13,000 canola contracts had traded as of 10:53 CDT.
Milling wheat, durum, and barley futures were all untraded.
