By Phil Franz-Warkentin, Commodity News Service Canada
April 2, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Tuesday, seeing a correction from recent declines as oversold price sentiment uncovered some buying interest.
Losses in CBOT soyoil and the mixed tone in soybeans did put some downward pressure on canola, but the Canadian futures managed to outperform their US counterparts. Speculators and domestic crushers were behind some of the strength, as they were said to be adjusting their positions by buying canola and selling soyoil.
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A lack of farmer selling provided further support for canola, with producers showing a reluctance to make any more sales following the recent downturn in the futures markets, according to a broker.
The firmer Canadian dollar did temper the upside potential in canola. Ideas that China was shifting some of its demand away from Canada and over to Australia also put some pressure on values.
About 14,459 canola contracts were traded on Tuesday, which compares with Monday when 11,190 contracts changed hands. Inter-month spreading accounted for 6,520 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
