By Phil Franz-Warkentin, Commodity News Service Canada
November 19, 2013
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing a modest correction following recent declines.
The January canola contract settled at its lowest level since early August on Monday, but managed to hold above major support at C$480 per tonne.
End user bargain hunting, a lack of significant farmer selling, and a slightly softer tone in the Canadian dollar were also supportive.
However, while oversold price sentiment was underpinning the futures for the time being, traders cautioned that a move below support was possible as the overall technical bias remains pointed lower. Canada’s record large crop, relatively favourable prospects for soybeans in South America, and slight declines in CBOT soyoil to start the day were also bearish.
About 5,800 canola contracts had traded as of 8:43 CST.
Milling wheat, durum, and barley futures were all untraded, although wheat did see some price adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 8:43 CST:
