WINNIPEG--The ICE Futures canola market is rebounding at midday Friday after suffering limit-down losses on Thursday, forcing ICE canola contract limits to be expanded from C$30 per metric ton to C$45.
While the July canola contract has held mostly steady, new crop contracts are rising by nearly C$30/MT. A Winnipeg-based trader said a combination of factors caused Thursday's speculative profit-taking and canola is now undergoing a "rebalancing act."
"We're getting some buying coming in. Yesterday, the markets looked pretty scary. They were in real trouble. But this morning, everyone's looking at it as a buying opportunity. So, some of the spec money is coming back in," the trader explained.
The Chicago soy complex also strengthened in concert with canola, with soybean contracts moving up 50 cents per bushel.
The Canadian dollar weakened by 0.6 of a cent at midday.
Nearly 16,900 contracts were traded as of 11:58 a.m. EDT.
Canola Jul 779.50 dn 7.60
Nov 694.10 up 27.70
Jan 694.90 up 27.00
Mar 692.50 up 27.20
Source: Commodity News Service Canada, email@example.com
(END) Dow Jones Newswires