By Phil Franz-Warkentin, Commodity News Service Canada
June 27, 2013
Winnipeg – ICE Futures Canada canola contracts traded to both sides of unchanged on Thursday, and finished mixed. The nearby July contract was higher, while the more deferred new crop months were all down.
July is set to become the cash month next week. Traders holding short positions in the contract, but without access to the physical product to deliver, were being forced to pay up to exit those positions on Thursday, said participants accounting for the strength in the front month.
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For the more active new crop contracts, weather concerns in parts of parts of Western Canada were somewhat supportive, according to traders. However, ideas that canola fields are in good shape overall limited the upside potential, especially as farmers were said to be increasing their forward pricing.
The USDA releases updated acreage and stocks reports on Friday, and positioning ahead of the data was kept a cautious tone in the canola market as well.
About 19,397 canola contracts were traded on Thursday, which compares with Wednesday when 14,719 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday.
Settlement prices are in Canadian dollars per metric ton.
