By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 4 (MarketsFarm) – ICE Futures canola contracts were holding onto small gains at midday Monday, seeing some consolidation after dropping sharply on Friday.
Friday’s sharp declines “flushed out” many speculators still holding long positions, while others added to their growing net short positions. A trader said canola was finally looking cheap to end users, with crush margins improving significantly.
“The market always has a habit of countering one extreme with another, and we’re probably getting too cheap in canola now,” added the trader.
Gains in Chicago Board of Trade soybeans and a softer tone in the Canadian dollar were also supportive for canola.
However, CBOT soyoil was weaker at midday, putting some pressure on values.
About 17,000 canola contracts traded as of 10:34 CST.
Prices in Canadian dollars per metric tonne at 10:34 CST:
Price Change
Canola May 462.30 up 1.00
Jul 471.10 up 1.00
Nov 484.30 up 1.30
Jan 491.50 up 1.80
