By Phil Franz-Warkentin, Commodity News Service Canada
July 24, 2014
Winnipeg – ICE Canada canola contracts were stronger Thursday morning, seeing a continuation of Wednesday’s corrective bounce as gains in the CBOT soy complex provided some spillover support.
Ongoing concerns over excessive moisture in parts of the Canadian Prairies and dryness in others continued to underpin the futures as well.
Uncertainty over the size and quality of the European rapeseed crop, as untimely rains have hurt harvest operations in parts of Germany and France, was also supportive for canola, according to participants.
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Speculative short-covering was a feature in both soybeans and canola. However, an analyst cautioned that the overall chart trend still remained pointed lower for both commodities, making any bounces a possible selling opportunity.
Expectations for a large US soybean crop, ample old crop canola supplies, and ideas that weather conditions were starting to improve across Western Canada, also tempered the gains.
About 5,600 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:42 CDT:
