By Phil Franz-Warkentin, Commodity News Service Canada
July 16, 2013
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing a bit of a correction following Monday’s losses.
After posting large declines for three straight sessions, canola was looking a little overdone to the downside, according to participants accounting for the corrective bounce.
Spillover from the advances in the CBOT soy complex contributed to the buying interest in canola.
There is also still enough uncertainty over new crop production to provide some underlying support, with yields still up in the air as the bulk of the canola crop goes through its key flowering stage.
However, crop prospects are generally said to be favourable for the time being, which limited the upside potential. The overall technical trend also remains pointed lower, which should make any move higher a good selling opportunity, according to analysts.
About 2,600 canola contracts had traded as of 8:38 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:38 CDT:
