| By Phil Franz-Warkentin, Commodity News Service Canada |
| Nov. 6, 2012 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:49 CST Tuesday, as the market saw a short-covering correction from Monday’s sell-off. “Canola is showing a little bounce today,” said a broker adding that Monday’s break below nearby technical support was overdone from a chart standpoint. Gains in CBOT soybeans accounted for some of the spillover buying interest in canola as well. Read AlsoCanadian Financial Close: Loonie rises, crude oil slipsGlacier FarmMedia | MarketsFarm – The Canadian dollar gained strength on Tuesday, closing at its highest level in 18 days. The loonie… The recent losses have shifted the nearby technical bias to the downside in canola, which limited the short-covering correction. Improving crop prospects in South America and expectations for an upward revision to the size of the US soybean crop in Friday’s USDA report were also weighing on values, said a broker. The firmer Canadian dollar, which was up by about a quarter cent relative to its US counterpart, limited the upside potential in canola as well. At 10:49 CST, about 5,100 canola contracts had changed hands with intermonth spreading only a minor factor. Milling wheat, durum, and barley futures were all untraded and unchanged. Prices in Canadian dollars per metric ton at 10:49 CST:Price Change Canola Jan 601.80 up 12.00 Mar 597.90 up 11.90 May 592.50 up 14.00 Milling Wheat Dec 308.50 unch Mar 318.00 unch Durum Dec 312.40 unch Mar 319.00 unch Barley Dec 250.00 unch Mar 253.00 unch |
