By Terryn Shiells, Commodity News Service Canada
November 4, 2013
WINNIPEG – ICE Futures Canada canola contracts closed higher on Monday, underpinned by strong end user demand for the commodity, analysts said.
Spillover support from the strength seen in Chicago soybean futures also generated some of the upward price action.
Continued slow farmer selling, despite some improving basis levels due to snow related road closures in parts of Western Canada this weekend, kept a firm floor under the market.
However, the advances were limited by spillover pressure from the losses seen in Chicago soyoil and Malaysian palm oil futures.
Expectations of a record large South American soybean crop and firmness in the value of the Canadian dollar were also bearish.
Activity was slow on Monday, as traders were positioning ahead of the USDA’s November 8 supply and demand report.
About 11,676 canola contracts were traded on Monday, which compares with Friday when 23,206 contracts changed hands.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
