By Terryn Shiells, Commodity News Service Canada
July 16, 2013
WINNIPEG – ICE Futures Canada canola contracts closed slightly higher on Tuesday, coming off of the highs seen earlier in the trading day.
Canola futures started the day on a firmer footing, lifted by ideas that recent declines were overdone and the market needed a correction to the upside, analysts said.
Values were also underpinned by spill over support from the gains seen in the Chicago soybean complex.
Some uncertainty surrounding new crop canola production provided support for futures.
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However, canola futures came off their highs amid pressure from reports that weather conditions have been generally favourable for crops across western Canada.
A pick up in farmer selling, as they’re more willing to market old crop supplies as the new crop continues to see good development, further undermined values.
The upswing in the value of the Canadian dollar was also bearish, as it made canola more expensive to international buyers.
About 14,115 canola contracts were traded on Tuesday, which compares with Monday when 14,436 contracts changed hands. Spreading accounted for 3,720 of the trades made.
Milling wheat, durum and barley futures were all untraded on Tuesday. Durum and barley prices remained unchanged, but the Exchange adjusted milling wheat prices higher after the close.
Settlement prices are in Canadian dollars per metric ton.
