By Phil Franz-Warkentin, Commodity News Service Canada
May 2, 2014
Winnipeg – ICE Canada canola contracts were stronger Friday morning, seeing a technical bounce following Thursday’s declines.
Ideas that the losses were overdone contributed to Friday’s turn higher, according to traders. Uncertainty over new crop production, as planting operations are only just getting started in Western Canada, was also underpinning the futures.
Gains in CBOT soy oil, a weaker tone in the Canadian dollar, and the fact that canola remains cheap compared to other oilseeds were supportive as well.
On the other side, farmer selling and Canada’s large supply situation helped temper the upside potential, according to traders. Statistics Canada releases its latest grain stocks report on Monday, May 5, which is expected to confirm the burdensome canola supply situation.
About 2,400 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 8:42 CDT:
