By Phil Franz-Warkentin, Commodity News Service Canada
August 7, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:50 CDT Wednesday, seeing a modest recovery following Tuesday’s sharp declines.
After setting fresh contract lows once again on Tuesday, the canola market was looking oversold and due for a corrective bounce, according to participants. In addition to the speculative buying interest, the recent downturn was also said to be encouraging some end-user bargain hunting as crush margins remain favourable.
Uncertainty over weather conditions across western Canada helped underpin the market as well. While the canola crop is in good shape overall, development has been slow and the possibility of frost damage before the harvest was being watched closely.
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A weaker tone in the Canadian dollar was also supportive for canola, said traders.
Losses in CBOT soyoil did temper the upside potential in canola, according to traders. The overall technical trend also remains pointed lower.
At 10:50 CDT, about 10,000 canola contracts had changed hands, with spreading accounting for about 3,000 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
