By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Jan. 2 (CNS Canada) – ICE Futures Canada canola contracts were stronger at midday Tuesday, seeing a modest corrective bounce to start the New Year.
After posting large losses last week canola was looking oversold, according to a broker accounting for some of Tuesday’s buying interest. A lack of farmer selling, as cold temperatures across the Prairies kept country movement at a standstill, was also supportive.
However, continued strength in the Canadian dollar tempered the upside, according to participants. The general technical downtrend also remains in place, with any advances likely seen as a selling opportunity.
About 6,000 canola contracts had traded as of 10:43 CST. Activity was described as thin and choppy, with some participants still on the sidelines following the Christmas and New Year’s holidays.
