By Phil Franz-Warkentin, Commodity News Service Canada
July 2, 2013
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing a modest recovery from recent declines.
Canola futures dropped to the bottom of edge of their long term trading range in early activity and uncovered some buying interest. The resulting bounce was underpinning the futures, according to traders.
Advances in CBOT soybeans Tuesday morning and spillover from the gains posted in soyoil on Monday when Canadian markets were closed for Canada Day contributed to the strength in canola, according to participants. A weaker tone in the Canadian dollar was also supportive.
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About 15% to 20% of the canola crops in western Canada are dealing with weather-related problems, including excessive moisture, according to analysts. While the weather concerns were somewhat supportive, the majority of the crop is in good shape which limited the upside potential.
Increased farmer selling was also said to be putting some pressure on values.
About 3,500 canola contracts had traded as of 8:55 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:55 CDT:
