By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Nov. 12 – ICE Canada canola contracts were stronger Thursday morning, seeing a modest correction after dropping sharply lower on Tuesday.
Canadian markets were closed for Remembrance Day on Wednesday, but CBOT soybeans moved up and canola was now seeing some rebalancing with its US counterpart despite today’s softer tone in soybeans.
Chart-based buying contributed to the advances, amid ideas that Tuesday’s losses were overdone. Some end-user bargain hunting was also thought to have been uncovered, while farmers were not aggressive sellers on the other side.
The Canadian dollar was weaker Thursday morning, which was also supportive for canola.
Weather conditions in South America remain at the forefront of the markets as well, with dryness in some parts of Brazil being offset by reports of improving weather elsewhere.
About 6,000 canola contracts had traded as of 8:42 CST.
Milling wheat, durum, and barley futures were all untraded.
