|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 6, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:49 CST Tuesday, as the market saw a short-covering correction from Monday’s sell-off.
“Canola is showing a little bounce today,” said a broker adding that Monday’s break below nearby technical support was overdone from a chart standpoint. Gains in CBOT soybeans accounted for some of the spillover buying interest in canola as well.
Canola supply/demand projections also remain tight going forward, which helped uncover some end-user buying interest after the recent losses, according to participants.
The recent losses have shifted the nearby technical bias to the downside in canola, which limited the short-covering correction. Improving crop prospects in South America and expectations for an upward revision to the size of the US soybean crop in Friday’s USDA report were also weighing on values, said a broker.
The firmer Canadian dollar, which was up by about a quarter cent relative to its US counterpart, limited the upside potential in canola as well.
At 10:49 CST, about 5,100 canola contracts had changed hands with intermonth spreading only a minor factor.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:49 CST:Price Change
Canola Jan 601.80 up 12.00
Mar 597.90 up 11.90
May 592.50 up 14.00
Milling Wheat Dec 308.50 unch
Mar 318.00 unch
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton