Canola sellers enjoyed a pleasant recovery in canola prices Wednesday as good commercial interest helped correct oversold conditions.”It was a very strong day,” said Union Securities broker Ken Ball after the end of trading, during which canola prices rose by $9.10 to $453.70 per tonne for the November 2010 ICE futures contract.The nine dollar recovery was a rebuke to the surge of selling that followed the recent Statistics Canada report that found more canola than some people were expecting. Prices peaked around $470 twice in August after a steady rise since June, but fell on the crop size news and have not made up the setback yet.Canola’s Wednesday rise was made despite general weakness in U.S. wheat, soybeans and corn futures prices.Ball said canola’s strength was due to its recent weakness, which had seen its price drop too far in relation to other crops.”Canola had gotten itself relatively cheap again,” said Ball.Traders said both exporters and domestic crushers were buying on Wednesday, lending a supportive fundamental factor to the canola market.Chinese buyers were said to be back in the market for new purchases.Minneapolis December spring wheat was down 19 cents to $6.95 per bushel. Corn was little changed on the close after a weak day and soybeans were similarly level, sitting at $10 per bushel on the November contract after the close.The Canadian dollar was flat, bouncing around the 94.3 cent level. Crude oil was up $1.11 to $72.74.
Canola rises on a strong day of trading
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