By Phil Franz-Warkentin, Commodity News Service Canada
September 24, 2013
Winnipeg – ICE Canada canola contracts were stronger Tuesday morning, seeing a corrective bounce off of the lows hit Monday.
The nearby November contract fell to its lowest level in over a month on Monday, but managed to bounce higher in overnight activity amid ideas that prices were starting to look a little overdone to the downside.
Gains in CBOT soybeans contributed to the firmer tone in canola, according to traders. European rapeseed futures were also higher in overnight activity.
However, the advancing Canadian harvest remained a bearish influence overhanging the market. With farmers growing a record large crop, any price increases were seen as good selling opportunities as the general downtrend is still intact.
Losses in CBOT soyoil also served to temper the upside potential in canola.
About 5,000 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 8:42 CDT:
