By Phil Franz-Warkentin, Commodity News Service Canada
May 28, 2014
Winnipeg – ICE Canada canola contracts were narrowly mixed Wednesday morning, seeing some consolidation following Tuesday’s sharp declines.
The nearby July contract fell to its lowest level in over a month on Tuesday, while new crop November hit its weakest point in nearly three months. Analysts said the losses were likely overdone, which brought in some speculative short-covering.
Overnight advances in the CBOT soy complex contributed to the firmer tone in canola, according to participants. End-user bargain hunting was also somewhat supportive. However, soybeans were turning mixed Wednesday morning, and canola also backed away to post losses in most active months.
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While there are still some areas of concern, weather conditions for seeding and crop development remain relatively favourable across most of Western Canada which tempered the advances.
Yesterday’s sharp declines also shifted the technical bias lower, making any advances a good selling opportunity from a chart standpoint, said analysts.
About 6,000 canola contracts had traded as of 8:52 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 8:52 CDT:
