By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 16, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were narrowly mixed at 10:51 CST Thursday, as the market bounced around both sides of unchanged in “choppy, two-sided activity,” according to a trader.
“There’s no real feature,” added a broker on the lack of direction in the canola market.
Early gains in CBOT soybeans had underpinned the canola market as well, but soybeans were well off their highs by midsession. Losses in CBOT soyoil also put some spillover pressure on canola.
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Oversold price sentiment and ideas that canola is cheap compared to most other oilseeds did provide some support, according to participants.
However, Canada’s record large canola crop and logistics issues across the Prairies continue to overhang the market, limiting the upside potential. The technicals also remain bearish overall, making any advances a good selling opportunity from a chart standpoint, according to participants.
About 6,500 canola contracts had traded as of 10:51 CST.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:51 CST:
