By Phil Franz-Warkentin, Commodity News Service Canada
September 18, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:45 CDT Wednesday, seeing a modest technical correction off of nearby lows.
The November contract retested its weakest levels of the past month in overnight trade, but managed to turn higher as oversold price sentiment encouraged some speculative short-covering, according to participants.
End-user demand added to the firmer tone, with exporters and domestic crushers both making routine purchases.
Uncertainty over the size of the US soybean crop was keeping some caution in the oilseed markets, including canola, said traders. However, the canola crop itself is expected to be record large, and the advancing harvest served to limit the upside potential.
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The large crop needs to be stored somewhere, and bin space issues were encouraging some additional farmer selling, said a broker. At the same time, the commercial system is starting to fill up with recently harvested supplies, causing nearby basis levels to widen out.
About 14,000 canola contracts had traded as of 10:45 CDT.
Milling wheat, durum, and barley futures were untraded on Wednesday.
Prices in Canadian dollars per metric ton at 10:45 CDT:
