By Terryn Shiells, Commodity News Service Canada
July 26, 2013
WINNIPEG – ICE Futures Canada canola contracts closed stronger on Friday, as traders were evening up positions ahead of the weekend, analysts said.
Some of the strength in prices was linked to ideas that recent losses were overdone and the market needed to correct higher.
The downswing in the value of the Canadian dollar provided further support, as it made canola more attractive to foreign buyers.
The need to keep a weather premium built into the market added to the bullish tone, as did a slowdown in farmer selling.
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However, a bearish technical bias and spill over pressure from the losses seen in Chicago soyoil helped to limit the gains.
Reports of generally favourable weather conditions for canola crop development across western Canada also put some downward pressure on values.
About 14,431 canola contracts were traded on Friday, which compares with Thursday when 16,697 contracts changed hands. Spreading accounted for 4,418 of the trades made.
Milling wheat, durum and barley futures were untraded and unchanged on Friday.
Settlement prices are in Canadian dollars per metric ton.
