By Phil Franz-Warkentin, Commodity News Service Canada
September 18, 2013
Winnipeg – ICE Futures Canada canola contracts moved higher on Wednesday, as speculative short-covering, solid end user demand, and spillover from the advances in CBOT soyoil all provided support.
The November contract tested its weakest levels of the past month in overnight trade, but managed to turn higher as oversold price sentiment encouraged some speculative short-covering, according to participants.
Solid end user demand contributed to the turn higher, as canola remains attractively priced compared to other oilseeds.
Uncertainty over the size of the US soybean crop was another supportive price influence. However, the Canadian canola crop itself is expected to be record large, and the advancing harvest and resulting increase in farmer hedges served to limit the upside potential.
About 21,371 canola contracts were traded on Wednesday, which compares with Tuesday when 27,230 contracts changed hands.
Milling wheat, durum and barley futures were untraded after wheat saw some price revisions following Tuesday’s close.
Settlement prices are in Canadian dollars per metric ton.
