By Phil Franz-Warkentin, Commodity News Service Canada
June 25, 2013
Winnipeg – ICE Futures Canada canola contracts were mixed on Tuesday, with gains in the nearby July contract but losses in the more actively traded new crop positions.
The widening out of the July/November spread, as participants worked to exit the front month ahead of first deliveries next week, accounted for some of the strength in the nearby July contract, according to participants. For the more deferred months, losses in CBOT soyoil and the relatively favourable weather conditions for crop development across most of western Canada weighed on values.
Read Also
Canadian Financial Close: Loonie rises, crude oil slips
Glacier FarmMedia | MarketsFarm – The Canadian dollar gained strength on Tuesday, closing at its highest level in 18 days. The loonie…
Statistics Canada released its updated acreage estimates Tuesday morning, pegging canola area in the country at 19.7 million acres. That was up from the 19.1 million forecast earlier in the year, but still below the 21.5 million planted in 2012. The number was in line with trade guesses, and participants were generally turning their attention to the relatively favourable weather conditions and good development across most of the Prairies.
While there are some areas of concern, crop conditions are looking good across most of western Canada, said participants. The solid crop prospects were said to be encouraging some farmer selling, as cash bids likely have more room to the downside than the upside given the current weather outlooks.
Losses in CBOT soyoil put some pressure on canola as well, although soybeans in the US ended with small gains.
Canola did run into support to the downside, and managed to finish off its lows for the session.
About 15,554 canola contracts were traded on Tuesday, which compares with Monday when 17,177 contracts changed hands. Spreading accounted for about 6,666 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
