By Phil Franz-Warkentin, Commodity News Service Canada
March 4, 2014
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing some follow-through buying after Monday’s advances.
The nearby technical bias is said to have shifted higher for canola, which was behind some of the speculative buying interest, according to traders.
A continued lack of significant farmer selling underpinned the lightly traded canola market as well, although traders cautioned that prices were nearing a point that would soon bring back more producer selling.
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The unrest in Ukraine remained in the background of the agricultural markets on Tuesday, with concerns over possible shipping disruptions from the region still a feature. However, there were also ideas that the gains in many futures markets on Monday were overdone, according to participants.
A choppy tone in the CBOT soy complex, which was bouncing around both sides of unchanged in overnight activity, limited the upside potential in canola, although the Canadian oilseed does remain cheap compared to soybeans.
Record large crop and the ongoing logistics issues across the Prairies remained a bearish influence tempering the advances in canola.
About 6,000 canola contracts had traded as of 8:56 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after wheat saw some price adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 8:56 CST:
