By Jade Markus, Commodity News Service Canada
WINNIPEG, November 2 – ICE Canada canola contracts were stronger at midday on Wednesday, in a corrective bounce after sharp declines in the previous session.
“Nervous trading—we managed to have a small rebound today,” said one Winnipeg-based analyst.
He added that the recovery is not major enough to shift the market’s tone back to the upside, and canola could see further declines throughout the week.
“Canola turned the corner yesterday, clearly we put a peak in the canola market, and there’s probably some room to the downside,” he said.
Long-position traders are looking to take money out of the market, which capped advances on Wednesday.
“It’s got a long way to come down if it starts declining,” the trader said.
Losses in the Chicago Board of Trade soybean market also limited the upside.
The Canadian dollar was slightly stronger against its US counterpart at midday on Wednesday.
About 13,577 contracts had traded as of 10:25 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
