By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 11, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small gains at 10:41 CST Wednesday, seeing some consolidation after dropping sharply during the three previous sessions.
In addition to the light speculative positioning, domestic crushers were also on the buy side, according to a trader who noted that crush margins remain very favourable. CBOT soybeans and soyoil were both higher on Wednesday.
A slowdown in farmer selling helped underpin prices as well, as producers were said to be moving to the sidelines again after making big sales earlier in the week.
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However, the record large crop remains a bearish influence overhanging the canola market, limiting the upside potential, according to participants.
The general technical trend is also still pointed lower, and a trader cautioned that the early gains in canola could be tied to speculators with short positions “buying bullets” before taking the market back down at the close and adding to their profits.
About 26,000 canola contracts had traded as of 10:41 CST.
Milling wheat, durum, and barley futures were untraded on Wednesday after wheat saw some revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:41 CST:
