By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 9, 2014
Winnipeg – ICE Canada canola contracts were firmer Thursday morning, as the market saw a modest correction after dropping to fresh lows on Wednesday.
Continued weakness in the Canadian dollar, which was trading at its lowest level in four years relative to its US counterpart, was supportive for canola.
Oversold price sentiment and ideas that canola is looking very cheap compared to other oilseeds contributed to the early gains in canola, according to traders.
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Gains in CBOT soybeans were also providing some spillover support, although soyoil was down in overnight activity. The USDA releases updated supply/demand tables on Friday, and positioning ahead of the report is expected to be a feature in the grains and oilseed markets.
While canola was due for a correction, the overall technical trend remains pointed lower, according to analysts. As a result, any gains were being seen as good selling opportunities.
The burdensome supply situation and ongoing logistics issues in Western Canada were also said to be tempering the upside potential.
About 7,000 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after seeing some price revisions after Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:40 CST:
