By Terryn Shiells, Commodity News Service Canada
August 2, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger Friday morning, following the gains seen in the Chicago soybean complex, analysts said.
Spill over support from the advances seen overnight in Malaysian palm oil and European rapeseed futures further underpinned values.
Continued talk that recent declines were overdone, and that the market is in need of an upward correction, was also supportive.
The need to keep a weather premium built into prices, as cool temperatures across North American oilseed growing regions are causing some nervousness, also fuelled some of the gains.
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The downswing in the value of the Canadian dollar added to the bullish tone, as it attracted more demand from crushers and exporters.
However, the technical bias remains to the downside, which helped to limit the upside potential in canola.
Reports of generally good weather conditions in North America and ideas that the cooler temperatures may actually benefit oilseed crops were also bearish.
As of 8:32 CDT Friday, about 1,810 canola contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:32 CDT:
