By Phil Franz-Warkentin, Commodity News Service Canada
July 31, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Wednesday, seeing a modest recovery to end the month as the market consolidated after recent declines.
Oversold price sentiment was behind much of the buying interest in canola, according to traders accounting for the bounce off of recent contract lows. However, the general technical trend remains pointed lower, and any attempts at taking values much higher were seen as good selling opportunities during the session.
Tight old crop supplies and uncertain production prospects were also serving to underpin the canola market, according to participants. However, canola crops are thought to be in good shape overall across western Canada and the lack of any significant weather threats in the immediate forecasts did limit the upside potential. A softer tone in CBOT soyoil was also overhanging the Canadian market.
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About 10,610 canola contracts were traded on Wednesday, which compares with Tuesday when 17,976 contracts changed hands. Spreading accounted for 3,336 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
