By Jade Markus, Commodity News Service Canada
WINNIPEG, July 26 – ICE Canada canola contracts were stronger at midday on Tuesday, following a rebound in US soybean markets.
“Canola’s kind of hanging back, it doesn’t want to follow the soy markets until they’re sure they’re going to stay up there,” said one Winnipeg-based trader.
However, Chicago Board of Trade soybeans are still likely seeing some long-liquidation, which could add pressure.
Investors are still largely short canola, holding a net fund position of about 40,000 contracts, one broker said.
The canola market is oversold to some degree, and probably due for a bounce, which supported the market on Tuesday, the trader said.
Malaysian palm oil closed higher overnight, which further underpinned canola.
The Canadian dollar advanced against its US counterpart at midday on Tuesday, which limited gains in canola.
About 8,657 contracts had traded as of 10:31 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
