By Terryn Shiells, Commodity News Service Canada
December 4, 2013
WINNIPEG – ICE Futures Canada Canola contracts were weaker on Wednesday, but managed to settle above the key support level of C$480 per tonne which was broken earlier in the day.
Some of the weakness in the market was linked to Statistics Canada’s report which showed 2013/14 Canadian canola production at a surprisingly large 17.96 million tonnes, analysts said.
Worries that Canada’s logistical system won’t be able to move the huge crop, therefore resulting in larger carryout stocks, added to the bearish tone.
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However, spillover support from the advances seen in Chicago soybean and soyoil futures helped to take canola off its lows.
The sharply weaker Canadian dollar provided some support as well, as it made canola more attractive to crushers and exporters.
Ideas that canola is under valued compared to other oilseeds kept a firm floor under the market.
About 51,705 canola contracts were traded on Wednesday, which compares with Tuesday when 24,772 contracts changed hands. Spreading was a feature and accounted for 43,056 of the trades.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
