By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, June 29 (CNS Canada) – Canola contracts on the ICE Futures Canada platform were stronger at midday Wednesday, with spreading against Chicago Board of Trade soybeans behind some of the buying interest.
Canola was looking underpriced compared to soybeans, and speculators were now buying back their short positions in canola while selling soybeans, according to a broker.
Statistics Canada pegged the country’s canola crop at 20.020 million acres in a report out this morning. That was up from a previous estimate of 19.345 million, but in line with trade estimates and the year ago level.
Gains in the Canadian dollar, losses in CBOT soybeans, and relatively favourable North American weather conditions all served to temper the upside potential in canola. Positioning ahead of Thursday’s USDA acreage and stocks reports was another feature.
About 13,000 canola contracts had traded as of 10:59 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
