ICE Canola Corrects Higher

By Phil Franz-Warkentin, Commodity News Service Canada

May 7, 2013

Winnipeg – ICE Canada canola contracts were mostly stronger in light trade Tuesday morning, seeing a correction from Monday’s declines.

A firmer tone in the CBOT soy complex helped underpin the canola market in overnight activity. Tightening old crop supplies, solid end user demand, and supportive technical signals, as the July contract moved back above C$600 per tonne, added to the firmer tone.

However, traders were said to be reluctant to push values too far one way or the other, with uncertainty over new crop production overhanging the market.

Warmer and drier weather conditions across much of western Canada should allow seeding operations to start to move forward, said analysts.

About 1,100 canola contracts had traded as of 8:47 CDT.

Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.

Prices in Canadian dollars per metric ton at 8:47 CDT