By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 14, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small gains at 10:47 CST Tuesday, seeing a modest correction after hitting fresh contract lows earlier in the session.
Weakness in the Canadian dollar, which was down about two-thirds of a cent relative to its US counterpart, contributed to the firmer tone in canola, according to a broker. A turn higher in CBOT soybeans was also supportive.
Commercials were on both sides of the market, according to a broker, with continued farmer hedges on the one side being met by routine pricing on the other. Speculative short-covering at the lows was also supportive, according to a broker.
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Canada’s record large canola crop continues to overhang the market, limiting the upside potential. The technicals also remain bearish overall, making any advances a good selling opportunity from a chart standpoint, according to participants.
About 17,000 canola contracts had traded as of 10:47 CST.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 10:47 CST:
