By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 20, 2014
Winnipeg – ICE Canada canola contracts were stronger Monday morning in thin trade. Recent price activity was seen as supportive from a chart standpoint, and follow-through buying on Friday’s firmer close was behind some of the early strength.
In addition to the oversold price sentiment and resulting short-covering, a slowdown in farmer selling on the other side was also somewhat supportive.
US markets are closed today for Martin Luther King Jr. Day, and the lack of direction from the CBOT soy complex was expected to lead to some choppy activity in the Canadian futures.
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Canada’s record large canola crop and the ongoing logistics issues moving it out of the Prairies remained a bearish influence on the market, tempering the gains, according to traders.
A slightly firmer tone in the Canadian dollar and relatively favourable crop conditions for soybeans in South America were also said to be limiting the upside potential in the market.
About 1,500 canola contracts had traded as of 8:48 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after seeing some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 8:48 CST:
