By Phil Franz-Warkentin, Commodity News Service Canada
November 21, 2013
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, as gains in most outside oilseed markets helped canola bounce off of major support. Speculative short-covering was a feature in early activity.
The January contract managed to hold above the key C$480 per tonne level on Wednesday and the failure to follow-through on the recent declines was seen as supportive from a technical standpoint, according to participants.
Strength in Malaysian palm oil, CBOT soyoil, and European rapeseed futures added to the firmer tone in canola. The weaker Canadian dollar was also supportive.
However, Canada’s large crop, good conditions for soybeans in South America, and the longer-term technicals that are still pointing lower did slow the advances.
About 4,500 canola contracts had traded as of 8:41 CST.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:41 CST:
