By Terryn Shiells, Commodity News Service Canada
April 16, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 8:31 CDT Tuesday, underpinned by ideas that Monday’s losses were overdone and the market needed an upward correction, traders said.
Continued concerns about tight Canadian canola supplies and slow farmer selling also generated some of the price firmness.
Worries that a late spring in western Canada will delay canola planting, and ultimately harm production, kept a firm floor under the market.
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Steady commercial demand and firmness in the cash market added to the bullish tone.
Canola values also found some spill over support from the advances seen in the CBOT soybean complex. Gains seen in Malaysian palm oil overnight were also supportive.
However, pressure from the advancing soybean harvest in South America helped to limit the advances, as did the upswing in the value of the Canadian dollar.
Technically, canola charts look bearish and values could run into profit-taking later in the day, according to analysts.
As of 8:31 CDT, about 4,780 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:31 CDT:
