By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 27, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Wednesday, seeing a corrective bounce after declining for three straight sessions.
Ideas that recent losses were overdone and the market was in need of an upward correction accounted for some of the buying interest, as prices bounced off of nearby support and proceeded to climb higher before running into profit-taking late in the day.
Gains in CBOT soybeans and soyoil contributed to the firmer tone in canola, according to participants. Ongoing concerns over the tightening supply situation in western Canada remained a bullish feature in the old crop contracts as well, with the new crop months lagging to the upside.
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Scale up farmer selling did slow the advances to some extent, according to participants. Expectations that South America will soon be marketing a record large soybean crop also undermined canola values.
About 23,289 canola contracts were traded on Wednesday, which compares with Tuesday when 29,545 contracts changed hands. Spreading accounted for about 15,654 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
