By Phil Franz-Warkentin, Commodity News Service Canada
September 17, 2013
Winnipeg – ICE Canada canola contracts were posting small gains Tuesday morning, seeing a modest corrective bounce following Monday’s losses.
Spillover from the slightly firmer CBOT soybeans contributed to the move higher in canola, amid ideas that both oilseeds were looking overdone to the downside.
In addition to the speculative buying, some light exporter and domestic crusher buying was coming forward as canola was said to be looking attractively priced.
However, the fundamentals for canola do remain somewhat bearish, with farmers across Western Canada continuing to make good progress harvesting a record large crop.
Recent price activity has also shifted the technical bias lower, making any corrective bounces a good selling opportunity from a chart standpoint.
About 5,700 canola contracts had traded as of 8:49 CDT.
Milling wheat, durum, and barley futures were all untraded, after seeing some adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 8:49 CDT:
