|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 19, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed higher on Monday, seeing a short-covering bounce off of last week’s declines amid ideas that prices had become overdone to the downside.
Gains in CBOT soybeans and soyoil provided the catalyst for the move higher in canola, according to participants.
Canola futures were said to be due for a short-covering correction from a technical standpoint after dropping to their weakest levels since June.
Some end-user bargain hunting was also evident Monday, with exporters and domestic crushers both pricing old business.
A lack of significant farmer selling, as producers appear content to hold out for higher prices, was also supportive, according to participants.
However, the stronger Canadian dollar, which was trading back above parity with its US counterpart, limited the advances.
Expectations for a large South American soybean crop also helped keep the gains in check.
About 14,682 canola contracts were traded on Monday, which compares with Friday when 13,272 contracts changed hands. Spreading accounted for about 8,166 of the contracts traded.
Milling wheat and durum futures were untraded, but revised lower after the close. Barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Jan 580.00 up 4.30
Mar 577.30 up 4.00
May 576.20 up 4.60
Milling Wheat Dec 300.30 dn 3.30
Mar 309.70 dn 3.30
Durum Dec 311.90 dn 0.50
Mar 318.50 dn 0.50
Barley Dec 250.00 unch
Mar 253.00 unch