By Terryn Shiells, Commodity News Service Canada
December 16, 2013
WINNIPEG – ICE Futures Canada Canola contracts moved higher on Monday, as the market was seeing a corrective bounce following a recent move to fresh contract lows.
Oversold price sentiment and ideas that canola is undervalued compared to other oilseeds contributed to some of the strength.
Exporter short covering and a pickup in buying interest from domestic crushers added to the bullish tone, brokers said.
Chicago soybean futures moved higher, which also provided some support for canola.
However, the upswing in the value of the Canadian dollar limited the gains, as did the large Canadian canola supply situation.
A pickup in selling from farmers and fund accounts at the highs of the day also limited the upside in canola futures.
About 34,789 canola contracts were traded on Monday, which compares with Friday when 40,145 contracts changed hands. Spreading accounted for 28,564 of the trades.
Milling wheat, durum and barley prices were untraded following price revisions after the close on Friday.
Settlement prices are in Canadian dollars per metric ton.
