By Phil Franz-Warkentin, Commodity News Service Canada
July 2, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains at 10:43 CDT Tuesday, as the market saw some consolidation following recent declines.
The November canola contract fell to its lowest level in nearly two months in overnight trade, but uncovered some buying interest at the lows to correct higher. In addition to the speculative buying, solid crush margins were also leading to increased demand from domestic processors, according to a trader.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
Continued weakness in the Canadian dollar accounted for some of the strength in the crush margins. The currency was trading below 95 US cents on Tuesday.
Relatively favourable growing conditions across western Canada did limit the upside potential in canola, with weather forecasts looking beneficial for crop development in most areas. However, excessive moisture does remain a concern in some fields, while other areas could do with more moisture and cooler temperatures as the crop enters its flowering stage, said a trader.
The CBOT soybean market was trading to both sides of unchanged on Tuesday, providing little direction for canola.
At 10:43 CDT, about 6,900 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:43 CDT:
