By Terryn Shiells, Commodity News Service Canada
August 7, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger Wednesday morning, lifted by short covering following Tuesday’s sharp losses, analysts said.
Ideas that yesterday’s move to the downside was overdone and needed an upward correction also helped values move to higher ground.
The downswing in the value of the Canadian dollar further underpinned prices, as it made canola more attractive on the export market.
Concerns about cold temperatures slowing crop development in western Canada added to the bullish tone, as did worries that late planting this spring will make canola more susceptible to frost this fall.
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Some spill over support from the gains seen in Chicago soybeans also underpinned values.
However, Chicago soyoil values, Malaysian palm oil and European rapeseed futures were weaker, which limited the gains in canola.
Reports that growing conditions have been generally favourable for North American oilseed crops were also bearish.
As of 8:32 CDT Wednesday, about 2,115 canola contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:32 CDT:
