By Terryn Shiells, Commodity News Service Canada
August 1, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were firmer Thursday morning, lifted by follow through buying from Wednesday’s higher close, analysts said.
Sentiment that the canola market is oversold, and in need of an upward correction, helped to fuel some of the advances.
Spill over support from the advances seen in outside oilseed markets, including Malaysian palm oil, European rapeseed and Chicago soyoil, added to the bullish tone.
Further support came from the downswing in the value of the Canadian dollar and tight old crop Canadian canola supply worries.
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Some concerns about cooler temperatures slowing crop development and worries that late planting will make canola more susceptible to frost this fall also fuelled some of the advances.
However, the technical bias is still pointed to the downside, which was limiting canola’s upward price action.
Reports that canola crops in western Canada are in generally good condition, with most areas experiencing non-threatening weather, were also bearish.
As of 8:38 CDT Thursday, about 3,025 canola contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:38 CDT:
