|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 28, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were firmer at 10:48 CDT Friday, recovering from earlier declines as gains in CBOT soybeans and ideas that canola was looking oversold from a technical standpoint provided support.
Larger than expected US soybean stocks, as reported by the USDA Friday morning, put some early pressure on the North American oilseed markets, including canola. However, the stocks data was bullish for wheat and corn. The sharp advances in those commodities pulled soybeans higher and canola followed suit, according to participants.
Ongoing concerns that Canada’s canola crop may not be large enough to meet demand this year were also supportive for canola, as exporters and domestic crushers were showing solid demand.
A lack of significant farmer selling and the softer Canadian dollar was another supportive feature in the canola market.
While canola was overdue for a corrective bounce after recent declines, the overall technical bias is still pointing lower. As a result, any gains were being taken as selling opportunities from a chart perspective, according to traders.
At 10:48 CDT, about 11,000 canola contracts had changed hands. Intermonth spreading was a feature, as traders continue to roll out of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:48 CDT:
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton