By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 15, 2014
Winnipeg – ICE Futures Canada canola contracts managed to post small gains at Wednesday’s close, seeing a bit of a short-covering correction after hitting fresh lows once again earlier in the day.
Gains in the CBOT soy complex, a slowdown in farmer selling, routine end user pricing, and ideas canola was looking oversold all contributed to the advances, according to participants.
However, the overarching fundamentals and technicals remain bearish, which limited the gains.
Canada’s record large canola crop and logistics issues across the Prairies continue to overhang the market, limiting the upside potential. The technicals also remain bearish overall, making any advances a good selling opportunity from a chart standpoint, said traders.
About 28,500 canola contracts were traded on Wednesday, which compares with Tuesday when 35,796 contracts changed hands. Spreading accounted for 23,308 of the contracts traded.
Milling wheat, durum and barley futures were untraded after seeing some price revisions following Tuesday’s close.
Settlement prices are in Canadian dollars per metric ton.
