By Phil Franz-Warkentin, Commodity News Service Canada
November 26, 2013
Winnipeg – ICE Futures Canada canola contracts settled with small losses on Tuesday after trading to both sides of unchanged in choppy activity.
A steady to lower tone in CBOT soybeans and soyoil accounted for some of the direction for the lightly traded canola market, with overnight declines in Malaysian palm oil contributing to the declines, according to traders. Canada’s record large crop also continued to overhang the canola market.
However, steady end user demand did provide some support. Crush margins remain at favourable levels, which kept the domestic processors on the buy side.
From a technical standpoint, canola remains rangebound overall. The US markets will be closed later this week for the Thanksgiving holiday, and some participants on both sides of the border were already starting to move to the sidelines.
About 16,416 canola contracts were traded on Tuesday, which compares with Monday when 29,454 contracts changed hands. Spreading accounted for 11,372 of the contracts traded.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
