By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 17, 2014
Winnipeg – ICE Futures Canada canola contracts were stronger on Friday, recovering from earlier losses late in the day as the selling ran out of steam and short covering came forward to provide support.
Canada’s record large crop and the ongoing logistics issues across Western Canada remained bearish for the canola market on Friday. Losses in CBOT soyoil also weighed on values, according to participants.
However, canola has already posted large losses in recent weeks and was due for a profit taking correction from a chart standpoint, said traders.
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Oversold price sentiment and ideas that canola is cheap compared to most other oilseeds contributed to the speculative buying interest. A slowdown in farmer selling was also said to be somewhat supportive, as was the weaker Canadian dollar.
About 26,874 canola contracts were traded on Friday, which compares with Thursday when 19,091 contracts changed hands. Spreading accounted for 24,536 of the contracts traded.
Milling wheat, durum and barley futures were untraded after seeing some price revisions following Thursday’s close.
Settlement prices are in Canadian dollars per metric ton.
