By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 18, 2014
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing some follow-through buying after Friday’s modest correction.
The nearby March contract was back above C$400 per tonne in early activity, with the move higher helping encourage some additional speculative short-covering in the oversold market, according to participants.
Gains in the CBOT soy complex and Malaysian palm oil contributed to the strength in canola.
However, Canada’s record large canola crop and the ongoing logistics issues across the Prairies remained a bearish influence overhanging the market.
The general technical outlook for canola is still pointed down, which makes any advances a good selling opportunity from a chart standpoint.
About 5,700 canola contracts had traded as of 8:49 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after seeing some price revisions following Friday’s close. Canadian markets were closed Monday.
Prices in Canadian dollars per metric ton at 8:49 CST:
