By Terryn Shiells, Commodity News Service Canada
October 8, 2013
WINNIPEG – ICE Futures Canada canola contracts closed higher on Tuesday, lifted by spillover support from the strong advances seen in Chicago soyoil futures, analysts said.
Gains seen in other oilseed markets, including European rapeseed and Malaysian palm oil, were supportive as well.
Some of the price firmness was also linked to the weakness in the value of the Canadian dollar, which was down about a third of a cent against the US dollar. The softer Canadian dollar makes canola more attractive to crushers and foreign buyers.
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Solid commercial demand helped to keep a firm floor under the canola market, as did technical based buying.
However, harvest pressure and expectations that the Canadian canola crop will be record large limited the gains.
Spillover pressure from the losses seen in Chicago soybeans was bearish as well.
About 22,646 canola contracts were traded on Tuesday, which compares with Monday when 17,366 contracts changed hands. Spreading accounted for 16,692 of the trades made.
Milling wheat and durum prices were untraded and unchanged. Barley futures saw 25 contracts traded in the December contract at a slightly firmer price.
Settlement prices are in Canadian dollars per metric ton.
