By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 16, 2014
Winnipeg – ICE Futures Canada canola contracts posted solid gains at Thursday’s close, seeing a short-covering bounce late in the day.
Oversold price sentiment and ideas that canola is looking cheap compared to most other oilseeds accounted for most of the eventual strength, said participants. A lack of significant farmer selling contributed to the gains, as producers were said to be backing away from the market.
Early gains in CBOT soybeans were also supportive, but soybeans gave back their advances to end slightly lower.
Canada’s record large canola crop and logistics issues across the Prairies continue to overhang the market, limiting the upside potential as well, said traders.
About 19,091 canola contracts were traded on Thursday, which compares with Wednesday when 28,500 contracts changed hands. Spreading accounted for 15,338 of the contracts traded.
Milling wheat, durum and barley futures were untraded after seeing some price revisions following Wednesday’s close.
Settlement prices are in Canadian dollars per metric ton.
