By Terryn Shiells, Commodity News Service Canada
December 16, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:44 CST Monday, recovering from recent sharp declines.
A pickup in buying interest from domestic crushers, as margins remain favourable for them, helped to underpin canola values, brokers said.
Sentiment that the market is oversold, and ideas that canola is undervalued compared to other oilseeds, added to the bullish tone.
Some of the advances seen in canola were also linked to short covering by exporters and spillover support from the gains in the Chicago soy complex.
However, the upswing in the value of the Canadian dollar, fund selling and a pickup in farmer hedges at the highs helped to limit the advances.
The large Canadian canola supply situation and logistical issues in moving it continued to overhang the market.
As of 10:44 CST Monday, about 20,120 contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following price revisions after the close on Friday.
Prices in Canadian dollars per metric ton at 10:44 CST:
