By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 11, 2013
Winnipeg – ICE Futures Canada canola contracts settled with higher on Wednesday, as advances in the CBOT soy complex helped the market see a bit of short-covering correction following recent declines.
In addition to the speculative positioning, crush margins remain very favourable and domestic crushers were also on the buy side, according to participants.
A slowdown in farmer selling helped underpin prices as well, as producers were said to be moving to the sidelines again after making big sales earlier in the week.
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However, the record large crop remains a bearish influence overhanging the canola market, limiting the upside potential.
The general technical trend is also still pointed lower after canola broke below major support earlier in the week, which made any gains a good selling opportunity from a chart standpoint, said traders.
About 44,797 canola contracts were traded on Wednesday, which compares with Tuesday when 68,962 contracts changed hands. Spreading accounted for 37,380 of the contracts traded.
Milling wheat, durum and barley futures were untraded, after wheat saw some price adjustments following Tuesday’s close.
Settlement prices are in Canadian dollars per metric ton.
