By Phil Franz-Warkentin, Commodity News Service Canada
October 7, 2013
Winnipeg – ICE Canada canola contracts were holding onto small gains Monday morning, as the market managed to see a modest correction following Friday’s declines.
Canola settled just above nearby support on Friday and was now said to be due for some consolidation from a chart standpoint, according to participants.
Solid end user demand and a softer tone in the Canadian dollar contributed to the gains in canola.
However, losses in CBOT soybeans and soyoil did serve to temper the upside potential in canola, said traders.
Statistics Canada estimated the country’s canola crop at a record 16 million tonnes on Friday and most industry participants anticipate an even larger number in subsequent reports. The large supplies also put some pressure on canola prices, limiting the advances.
About 4,000 canola contracts had traded as of 8:46 CDT.
Milling wheat, durum, and barley futures were all untraded after wheat saw some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 8:46 CDT:
