By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 15, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were narrowly mixed at 10:51 CST Tuesday, seeing some consolidation after Monday’s rally. The most active nearby contracts were posting small losses, while the more deferred positions were a little firmer.
Gains in CBOT soybeans and soyoil did provide some underlying support for canola, according to participants. However, canola is said to be looking overpriced compared to other oilseeds, limiting the upside potential.
Canola was unable to move past key technical resistance levels during Monday’s rally, which likely accounted for some chart-based selling on Tuesday, according to an analyst.
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Expectations for large South American soybean crops also continue to overhang the oilseed markets, although concerns over dryness in some areas were being followed closely.
Tightening canola supplies in western Canada and the continued demand from end users helped underpin canola values, as supplies will need to be rationed going forward.
At 10:51 CST, about 4,700 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:51 CST:
