By Terryn Shiells, Commodity News Service Canada
August 8, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger Thursday morning, as ideas that the market is oversold and in need of a corrective bounce provided support, analysts said.
Some spill over support from the gains seen in Chicago soybeans and soyoil further underpinned values.
Gains seen in Malaysian palm oil and European rapeseed futures overnight were also supportive.
A slowdown in farmer selling, as they’re waiting for stronger prices, also fuelled some of the advances.
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The need to keep a weather premium in the market, due to concerns about cold temperatures slowing crop development in western Canada, added to the bullish tone.
But, there are also ideas that the cooler temperatures will help prolong the flowering period, which would increase canola yields.
The technical bias remains pointed to the downside, which helped to limit the advances seen in canola.
Activity was on the lighter side Thursday morning. As of 8:33 CDT, about 1,610 canola contracts had traded.
Barley futures were unchanged and untraded. Milling wheat and durum futures were also untraded, though the Exchange moved prices lower after the close on Wednesday.
Prices in Canadian dollars per metric ton at 8:33 CDT:
