By Terryn Shiells, Commodity News Service Canada
July 30, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were steady to slightly firmer Tuesday morning, as the market was consolidating following recent sharp losses.
The evening of positions ahead of month’s end was also responsible for some of the price firmness, market watchers said.
Further support came from ideas that the canola market is oversold and needed an upward correction, as well as spill over support from the gains seen in Chicago soyoil.
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The need to keep a weather premium built into prices, as there’s still enough uncertainty surrounding new crop canola production in western Canada, also provided some underlying support.
The downswing in the value of the Canadian dollar and tight old crop supply concerns added to the bullish tone.
However, generally good crop conditions and forecasts calling for beneficial weather across western Canada tempered the gains.
The technical bias continues to remain pointed to the downside, which was also limiting the upside in canola.
As of 8:47 CDT Tuesday, about 6,235 canola contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:47 CDT:
