By Terryn Shiells, Commodity News Service Canada
October 10, 2013
WINNIPEG – ICE Futures Canada canola contracts closed stronger on Thursday, following the gains seen in Chicago soyoil futures, analysts said.
The advances seen in Malaysian palm oil and European rapeseed futures were also supportive.
Some of the price strength was also linked to concerns about wet weather disrupting harvest activities in some parts of Western Canada this week.
Optimism that the US government’s shutdown will end soon was supportive for commodities, including canola futures.
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A general slowdown in farmer selling, as they’re content to wait for higher prices now that harvest is near completion, was bullish.
However, some hedge pressure came in at the highs of the day, as the advances were seen as good selling opportunities.
Expectations that Canada will produce more than 16 million tonnes of canola this year continued to overhang the market.
About 30,468 canola contracts were traded on Thursday, which compares with Wednesday when 26,357 contracts changed hands. Spreading was a feature of the trade and helped to augment the volume total.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
