By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 21, 2014
Winnipeg – ICE Canada canola contracts were posting small losses in the most active front months Tuesday morning, seeing a modest correction after rallying higher on Monday while US markets were closed for Martin Luther King Jr. Day.
Canada’s record large canola crop and the ongoing logistics issues moving it out of the Prairies remained a bearish influence on the market, according to traders. Losses in CBOT soybeans and good South American crop conditions contributed to the softer tone in canola.
However, CBOT soyoil and other outside vegetable oil markets were higher in overnight activity, which provided some spillover support.
Continued weakness in the Canadian dollar, ideas that canola remains cheap compared to other oilseeds, and improving technical signals were all suportive as well.
About 3,000 canola contracts had traded as of 8:49 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:49 CST:
