By Terryn Shiells, Commodity News Service Canada
September 9, 2013
WINNIPEG – ICE Futures Canada canola contracts closed slightly firmer on Monday, though the November contract failed to stay above the key support level of C$500 per tonne.
Activity was choppy throughout the day amid nervousness ahead of Thursday’s USDA report, as it is still unclear how big the US soybean crop will be, analysts said.
Some support for canola futures came from a pickup in crusher and end-user buying, which was linked to ideas that canola is more attractively priced than other oilseeds.
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The need to keep a weather premium built into prices until harvest activities are complete in Western Canada provided further support.
Ideas that recent declines were overdone and that the market was due for a corrective bounce added to the bullish tone.
However, spill over pressure from the losses seen in the Chicago soy complex limited the advances.
Pressure from the advancing harvest in Western Canada and continued expectations that the Canadian canola crop will be record large were also bearish.
About 25,459 canola contracts were traded on Monday, which compares with Friday when 27,555 contracts changed hands. Spreading accounted for 7,792 of the trades made.
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.
