By Jade Markus, Commodity News Service Canada
WINNIPEG, March 28 – ICE Canada canola contracts were stronger at midday on Tuesday, as the market continued recovery-based trade after sharp losses in previous sessions.
Last week canola lost ground in line with US markets and reports of cancelled orders, which pushed prices into overdone territory.
“They sold it too hard, and succeeded in knocking it down better than they expected, I think. Now they’re covering their shorts and its bobbing back up pretty crisply,” said one Winnipeg-based analyst.
Unlike soybeans, it’s hard for investors to justify cheap canola, as supplies could be tight moving into the spring.
“It’s got a rationing job to do, unlike the bean market, where we’ve got a huge surplus,” he added.
Slight strength in the Canadian dollar against its US counterpart tempered advances.
About 17,142 contracts had traded as of 10:48 a.m. CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:48 a.m. CDT:
