By Phil Franz-Warkentin, Commodity News Service Canada
June 24, 2013
Winnipeg – ICE Futures Canada canola contracts traded to both sides of unchanged on Monday, but managed to settle with small gains overall as weakness in the Canadian and new crop production uncertainty provided underlying support.
CBOT soybean oil traded at new contract lows Monday, which was bearish for canola, according to traders. Malaysian palm oil and European rapeseed futures were also down in overnight activity.
Relatively favourable weather for crop development across western Canada was also said to be weighing on values. However, there are also still enough areas of concern to keep some weather premiums in the market, said a broker.
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Sharp weakness in the Canadian dollar, which has now fallen by over three cents compared to its US counterpart over the past week, accounted for much of the eventual strength in the canola market. The softer currency helps crush margins improve and also makes exports more attractive.
Statistics Canada releases updated acreage estimates on Tuesday, June 25, and positioning ahead of the report was behind some of the activity on Monday.
About 17,177 canola contracts were traded on Friday, which compares with Friday when 10,289 contracts changed hands. Spreading accounted for about 9,428 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
