By Terryn Shiells, Commodity News Service Canada
September 13, 2013
WINNIPEG – ICE Futures Canada canola contracts closed weaker on Friday, undermined by spillover pressure from the losses seen in the Chicago soybean complex.
Ideas that Thursday’s advances were overdone and a downward correction was needed also fuelled some of the declines, analysts said.
A pickup in farmer selling following the rally on Thursday was responsible for some of the price weakness as well.
Canola values were also pressured by advancing harvest activities in Western Canada and reports of record large yields in many areas, brokers said.
However, steady commercial demand, as canola is more attractively priced than other oilseeds, limited the declines.
The downswing in the value of the Canadian dollar was also supportive, as it made canola more attractive to foreign buyers and crushers.
About 23,113 canola contracts were traded on Friday, which compares with Thursday when 26,478 contracts changed hands.
Barley, milling wheat and durum prices were untraded and unchanged following price revisions after the close on Thursday.
Settlement prices are in Canadian dollars per metric ton.
