By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Aug. 2 (CNS Canada) – ICE Canada canola contracts were stronger Wednesday morning, as the market saw a modest correction after Tuesday’s sharp losses.
Ideas that the selloff was overdone had investors back on the buy side on Wednesday, although volumes were thin.
Gains in the Chicago Board of Trade soy complex, weakness in the Canadian dollar, and persistent weather concerns in parts of Western Canada contributed to the early strength in canola, according to participants.
However, the nearby forecasts are showing some improvement across the Prairies, which tempered the upside. Tuesday’s sharp declines were also bearish from a chart standpoint, shifting the nearby technical bias lower.
About 2,400 canola contracts had traded as of 8:47 CDT.
Milling wheat, durum, and barley futures were all untraded.
