By Terryn Shiells, Commodity News Service Canada
July 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were firmer Friday morning, lifted by ideas that recent declines were overdone and the market needed an upward correction, analysts said.
Some of the upward price action was also linked to traders evening up positions ahead of the weekend.
Spill over support from the advances seen in Chicago soybeans also helped to underpin canola values, as did the downswing in the value of the Canadian dollar.
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There are enough areas of concern to keep a weather premium built into prices, which further underpinned the canola market.
Continued worries about the tight Canadian canola supply situation added to the bullish tone, as did a slowdown in farmer selling.
However, the technical bias is still pointed to the downside, which helped to limit the upside potential in canola.
Forecasts calling for generally favourable weather across canola growing regions in western Canada also limited the gains.
Soyoil values in Chicago were weaker Friday morning, and the losses spilled over to weigh on canola as well.
As of 8:33 CDT, about 2,740 canola contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:33 CDT:
