By Phil Franz-Warkentin, Commodity News Service Canada
July 31, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were holding onto small gains at 10:42 CDT Wednesday, seeing some consolidation following recent declines.
After setting fresh contract lows for the fifth day in a row on Tuesday, canola was said to be looking oversold and due for a bit of a correction, according to market participants. However, the general technical trend remains pointed lower, and a trader cautioned that values could easily turn lower again by the close.
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Spillover from the gains seen in CBOT soybeans contributed to the firmer tone in canola at midsession. A lack of farmer selling was also said to be providing some support.
Tight old crop supplies and uncertain production prospects were also serving to underpin the canola market. However, canola crops are in good shape overall across western Canada and the lack of any significant weather threats in the immediate forecasts did weigh on values.
At 10:42 CDT, about 6,000 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing their values revised after Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:42 CDT:
