By Terryn Shiells, Commodity News Service Canada
Winnipeg, Jan. 20 – ICE Futures Canada canola contracts were stronger on Monday. Friday’s higher close shifted the canola market’s technical bias to the upside, which sparked some follow-through buying that underpinned prices, analysts said.
Additional support came from ideas that the market is oversold, as well as talk that canola is undervalued compared to other oilseeds.
A general slowdown in farmer selling into western Canadian cash markets kept a firm floor under the market.
However, the upswing in the value of the Canadian dollar and reports of good conditions for South America’s soybean crop were bearish.
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Expectations of large Canadian canola ending stocks, due to problems within Canada’s grain handling system, continued to overhang the market.
Activity was light, as the market lacked direction from the US soybean market because it was closed to observe the Martin Luther King Jr. day holiday.
Only about 9,923 canola contracts were traded on Monday, which compares with Friday when 26,874 contracts changed hands. Spreading accounted for 6,994 of the trades.
Milling wheat, durum and barley prices were untraded.
Settlement prices are in Canadian dollars per metric ton.
