By Terryn Shiells, Commodity News Service Canada
December 30, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:38 CST Monday, as funds were covering their short positions ahead of the New Year, brokers said.
Some of the price strength was also linked to ideas that canola is oversold and undervalued compared to other oilseed markets.
Buy stops were hit on the way up, which helped to amplify the price advances, according to analysts.
However, spillover pressure from the declines seen in the Chicago soy complex helped to limit the upside, as did the upswing in the value of the Canadian dollar.
The large Canadian canola supply situation and expectations of a very big carryout into the 2014/15 (Aug/Jul) crop year continued to overhang prices.
As of 10:38 CST Monday, about 12,890 contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following price revisions after the close on Friday.
Prices in Canadian dollars per metric ton at 10:38 CST:
