By Phil Franz-Warkentin, Commodity News Service Canada
May 14, 2013
Winnipeg – ICE Futures Canada canola contracts were higher on Tuesday, as speculative buying and a weaker Canadian dollar provided support.
Overbought price sentiment put some pressure on canola values early in the day and the market ran into chart resistance to the upside. Profit-taking and farmer selling came forward as values neared the top end of a four-month trading range. However, that selling subsided, and speculators returned to the buy side to pull the market higher as the day progressed. The nearby July contract settled above C$625 per tonne, which was seen as supportive from a technical standpoint.
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Uncertainty over planting weather for the new crop provided support as well. While seeding progress is starting to pick up, forecasts are calling for rainfall across much of the Canadian Prairies later in the week which should cause some delays, said traders.
A softer Canadian dollar, which was down by about two-thirds of a cent relative to its US counterpart, was also supportive for canola values.
About 10,188 canola contracts were traded on Tuesday, which compares with Monday when 12,860 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
