By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 10, 2014
Winnipeg – ICE Canada canola contracts were posting gains Friday morning, as the market saw some consolidation after setting fresh lows on Thursday.
The USDA releases updated supply/demand tables at 11:00 CST, and traders on both sides of the border were said to be squaring positions ahead of the report.
Continued weakness in the Canadian dollar, which was down another three quarters of a cent relative to its US counterpart this morning following disappointing jobs data, helped underpin the canola market. The currency has lost about two-and-a-half cents over the past week.
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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.
Advances in CBOT soybeans were also providing some spillover support, although soyoil was down in overnight activity.
The overall technical trend also remained pointed down for canola, which makes the early advances a good selling opportunity, according to some participants.
The burdensome supply situation and ongoing logistics issues in Western Canada were also said to be tempering the upside potential.
About 2,500 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 Thursday’s close.
Prices in Canadian dollars per metric ton at 8:40 CST:
