By Phil Franz-Warkentin, Commodity News Service Canada
October 29, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Tuesday, bouncing off of early declines to settle with solid gains.
Follow-through selling on Monday’s losses and a lack of significant end user demand weighed on prices in early activity. However, canola managed to turn higher as a number of factors provided support.
A firmer tone in CBOT soyoil provided the catalyst for the bounce in canola, according to a trader. Continued weakness in the Canadian dollar was also supportive, as the softer currency helped crush margins improve. A lack of farmer selling was underpinning the futures as well, with Canadian farmers generally said to be “locking up their bins” for the time being. However, those bins are overflowing, and the record large crop grown this year remained a bearish influence overhanging the futures.
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About 23,686 canola contracts were traded on Tuesday, which compares with Monday when 33,657 contracts changed hands. Spreading accounted for 15,308 of the contracts traded.
Milling wheat, durum and barley futures were untraded after wheat saw some price adjustments following Monday’s close.
Settlement prices are in Canadian dollars per metric ton.
