By Terryn Shiells, Commodity News Service Canada
September 23, 2013
WINNIPEG – ICE Futures Canada canola contracts closed weaker on Monday, undermined by continued pressure from advancing harvest activities in Western Canada, analysts said.
Many regions are reporting very large yields, and Canada is expected to harvest its biggest canola crop ever this fall.
As harvest progresses, farmers are also selling more actively because they don’t have enough space for all of the grain, which was also bearish for prices.
Spillover pressure from the losses seen in Chicago soyoil and soybean futures further undermined values.
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Technical based selling and the stronger Canadian dollar were also responsible for some of the price softness.
However, the need to keep a weather premium built into prices, as the risk of frost damage is still there, limited the losses.
Steady commercial and exporter demand kept a firm floor under the market.
About 21,878 canola contracts were traded on Monday, which compares with Friday when 26,681 contracts changed hands.
Barley, milling wheat and durum prices were untraded and unchanged following price revisions after the close on Friday.
Settlement prices are in Canadian dollars per metric ton.
