By Phil Franz-Warkentin, Commodity News Service Canada
October 22, 2013
Winnipeg – ICE Canada canola contracts bounced around to both sides of unchanged in overnight activity, but were holding onto small gains in most months Tuesday morning.
After posting solid gains on Monday, canola was said to be due for a correction and values initially moved down in overnight trade. However, the technical bias is said to have shifted higher, which accounted for some of the eventual strength.
A softer tone in CBOT soybeans did put some pressure on canola, according to participants. European rapeseed was also down overnight, although Malaysian palm oil was higher and CBOT soyoil was holding steady.
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Canada’s record large canola crop and the reluctance of end users to aggressively bid up the market, given those ample supplies, accounted for some weakness in the futures.
However, with the canola harvest complete in most areas of Western Canada, off-the-combine farmer selling was slowing down and producers were said to be generally content to hold onto their canola for the time being.
About 3,800 canola contracts had traded as of 8:53 CDT.
Milling wheat, durum, and barley futures were all untraded, although wheat prices were adjusted following Monday’s close.
Prices in Canadian dollars per metric ton at 8:53 CDT:
