By Phil Franz-Warkentin, Commodity News Service Canada
June 18, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Tuesday, as solid end user demand, uncertainty over new crop production, and technical signals all provided support.
Relatively good crop conditions across most of western Canada are setting the stage for a large canola crop, which did temper the upside in the market, according to a broker. However, the supply/demand outlook looks very tight for canola, and Canada needs a large crop to meet the demand going forward. With the growing season only in its early stages, a broker said there were still more than enough areas of uncertainty to keep values well supported.
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Farmers were also reluctant sellers as they wait to get a better handle on this year’s crop before committing aggressively, said participants.
The large South American soybean crop overhanging the oilseed markets did temper the upside potential in canola. A mixed tone in CBOT soybeans and late session profit-taking also put some pressure on the Canadian futures.
About 16,075 canola contracts were traded on Tuesday, which compares with Monday when 13,197 contracts changed hands. Spreading accounted for nearly 9,000 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
