By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 16, 2013
Winnipeg – ICE Canada canola contracts were stronger Monday morning, seeing a modest correction to start the week after posting large declines recently.
Canola set fresh contract lows nearly every day last week, and was said to be looking oversold from a chart standpoint. In addition to the technical short-covering coming forward Monday morning, canola was also underpinned by ideas the commodity is looking very cheap compared to other oilseeds.
However, logistical issues moving Canada’s record large crop continue to limit the upside potential in canola, according to participants.
The overall trend remains pointed lower as well, which was causing any gains to be seen as good selling opportunities.
The CBOT soy complex was narrowly mixed in early activity, providing little direction for canola. The Canadian dollar was also little changed Monday morning.
About 7,500 canola contracts had traded as of 8:43 CST.
Milling wheat, durum, and barley futures were all untraded, although wheat and durum saw some price adjustments following Friday’s close.
Prices in Canadian dollars per metric ton at 8:43 CST:
