By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 15, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small gains at 10:51 CST Wednesday, as advances in CBOT soybeans and soyoil helped the market consolidate above recent contract lows.
A slowdown in farmer hedges contributed to the strength in canola, according to a trader. Speculative short-covering, amid ideas that canola was looking overdone to the downside, provided support as well.
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 19,000 canola contracts had traded as of 10:51 CST.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:51 CST:
