By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 26 (CNS Canada) – ICE Canada canola contracts were stronger Tuesday morning, as the market managed to see a modest correction off of its nearby lows.
The most active November contract dropped below the psychological C$450 per tonne mark on Monday which was bearish from a technical standpoint. While the downtrend remains in place, the market was also looking oversold and due for a corrective bounce, according to participants.
Commercial bargain-hunting contributed to the early strength in the futures, as crush margins remain very profitable for end-users.
Gains in the Chicago Board of Trade soy complex provided some spillover support for canola as well.
However, relatively favourable North American crop conditions and expectations for large crops limited the upside potential in canola.
About 3,000 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:44 CDT:
