By Phil Franz-Warkentin, Commodity News Service Canada
October 25, 2013
Winnipeg – ICE Canada canola contracts were holding onto small gains Friday morning, seeing a modest recovery after closing lower on Thursday and bouncing around both sides of unchanged overnight.
Continued weakness in the Canadian dollar contributed to the firmer tone in the canola market, as the softer currency has helped crush margins improve to their best levels in a month.
However, the record large crop overhanging the market does remain a bearish influence. The advancing US soybean harvest, expectations for a large South American soybean crop, and declines in most outside oilseed markets also put some pressure on canola prices to start the day.
Technical resistance kept a lid on the gains as well, with yesterday’s weak close seen as a bearish technical signal, according to an analyst.
About 4,500 canola contracts had traded as of 8:45 CDT.
Milling wheat, durum, and barley futures were all untraded, although wheat did see some price adjustments following Thursday’s close.
Prices in Canadian dollars per metric ton at 8:45 CDT:
