By Phil Franz-Warkentin, Commodity News Service Canada
November 5, 2013
Winnipeg – ICE Canada canola contracts were weaker Tuesday morning amid ideas that Monday’s late rally was overdone.
Canola outpaced CBOT soybeans to the upside on Monday and was due for a profit-taking correction from a technical standpoint, according to participants.
The record large crop grown in Western Canada this year, relatively favourable South American crop conditions, and expectations for upward revisions to the size of the US soybean crop added to the softer tone.
The USDA releases its first supply/demand report in two months on Friday, November 8, and positioning ahead of the report was expected to be a feature in the grains and oilseeds – including canola.
Steady end-user demand, the weaker Canadian dollar, gains in CBOT soybeans, and a lack of significant farmer selling provided some underlying support.
About 4,300 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded, although wheat did see some price adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 8:40 CST:
