By Terryn Shiells, Commodity News Service Canada
July 31, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were narrowly mixed amid choppy activity Wednesday morning.
Some support came from ideas that the market is oversold and in need of an upward correction, analysts said.
The need to keep a weather premium built into prices helped to underpin canola, as did spillover support from the gains seen in Chicago soyoil.
Weakness in the value of the Canadian dollar also provided some underlying support, as it made canola more attractive to foreign buyers.
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On the other side, technical based selling was bearish, as the bias remains pointed to the downside.
Reports that oilseed crops in North America are doing well amid generally favourable weather conditions, and forecasts calling for non-threatening conditions, put some downward pressure on values.
Speculative based selling ahead of the month’s-end was also weighing on canola values.
As of 8:37 CDT Wednesday, about 1,610 canola contracts had traded.
Milling wheat, barley and durum futures were untraded. Though, the Exchange adjusted prices for all three commodities after the close on Tuesday.
Prices in Canadian dollars per metric ton at 8:37 CDT:
