By Phil Franz-Warkentin, Commodity News Service Canada
April 16, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Tuesday, as expectations for planting delays in western Canada helped values recover from Monday’s declines.
Ongoing concerns over the weather conditions across western Canada, with many areas of the Canadian Prairies still under a considerable amount of snow, accounted for much of the strength in the market, according to participants.
Solid end-user demand, a lack of willing farmer sellers, and spillover from the advances in Chicago soybeans provided further support. News that Canada had gained expanded access for exporting canola into China helped underpin the futures as well.
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However, while planting delays are likely this year, weather conditions will be followed closely over the next few weeks and a broker noted that there is still plenty of time to get a crop in the ground.
Canola was also said to be looking overpriced compared to other oilseeds, which tempered the upside potential. A firmer tone in the Canadian dollar also served to limit the advances.
About 32,821 canola contracts were traded on Tuesday, which compares with Monday when 14,446 contracts changed hands. Inter-month spreading was behind most of the activity, accounting for about 30,490 of the contracts traded.
Milling wheat and durum futures were untraded and unchanged on Tuesday. Barley futures were also untraded, but the new crop contracts were revised lower after the close.
