By Terryn Shiells, Commodity News Service Canada
August 13, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were slightly higher Tuesday morning, as the market was consolidating following Monday’s sharp advances, analysts said.
Canola values continued to find some support from Monday’s USDA report which showed smaller than expected soybean production in the US for 2013/14.
Spill over support from the gains seen in the Chicago soybean complex Tuesday morning added to the bullish tone.
Gains seen in European rapeseed and Malaysian palm oil futures overnight provided further support for canola prices.
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Some of the buying was also linked to the need to keep a weather premium built into prices due to concerns about cool weather slowing crop development in Western Canada.
The downswing in the value of the Canadian dollar also fuelled some of the advances, as it made canola more attractive to international buyers.
However, the technical bias in canola remains pointed to the downside, which helped to limit the upside potential, traders said.
Ideas that the Canadian canola crop will be very large this year as long as there are no problems with weather or frost were also bearish.
As of 8:31 CDT, about 3,500 canola contracts had traded.
Barley futures were untraded and unchanged. Milling wheat and durum futures were also untraded, though the Exchange moved prices lower for both commodities after the close on Monday.
Prices in Canadian dollars per metric ton at 8:31 CDT:
