By Phil Franz-Warkentin, Commodity News Service Canada
July 16, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 11:00 CDT Tuesday, taking some direction from the gains in the CBOT soy complex.
Oversold technical signals and the need for a correction following recent declines contributed to the firmer tone in canola, according to analysts. The November contract touched its lowest level in seven months on Tuesday, and uncovered some support to the downside.
While uncertainty over new crop production was also supportive, “the good growing conditions across western Canada are keeping a lid on the market,” said a trader noting that canola was lagging soybeans to the upside.
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He said a lack of extreme heat was helping canola crops in many areas see a long flowering period, which was beneficial for yields.
The overall technical bias also remains pointed lower, despite today’s short-covering bounce, according to participants.
At 11:00 CDT, about 10,000 canola contracts had changed hands, with intermonth spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 11:00 CDT:
