By Phil Franz-Warkentin, Commodity News Service Canada
September 9, 2013
Winnipeg – ICE Canada canola contracts were stronger Monday morning, seeing a technical recovery from Friday’s declines.
The November canola contract dropped below the psychological C$500 per tonne level in the final minutes of Friday’s trading session, leaving the futures open to a corrective bounce to start the week, according to analysts.
Canola has also lost ground relative to CBOT soybeans recently, and end user buying interest was also said to be picking up as prices look more attractive.
However, the advancing Canadian harvest and mounting expectations for a record large crop did temper the upside potential in canola, according to traders.
Continued strength in the Canadian dollar, after the currency rallied on Friday, also slowed the upward move in canola.
About 6,000 canola contracts had traded as of 8:43 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some adjustments following Friday’s close.
Prices in Canadian dollars per metric ton at 8:43 CDT:
