By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was stronger at midday Wednesday, correcting off contract lows amid ideas the losses were overdone.
Fund short covering accounted for much of the activity, according to a trader, as speculators were thought to be taking profits on their large bearish positions. However he cautioned that the move higher could be a “dead cat bounce,” with most technical indicators still pointing lower.
Gains in Chicago soybeans provided spillover support as well, although soyoil remained pointed lower.
Ongoing uncertainty over Western Canadian crop conditions remained somewhat supportive.
An estimated 25,000 canola contracts traded as of 10:47 CDT.
Prices in Canadian dollars per metric tonne at 10:47 CDT:
Canola Nov 578.50 up 9.90
Jan 589.20 up 10.20
Mar 597.30 up 9.40
May 602.40 up 8.90
