By Phil Franz-Warkentin, Commodity News Service Canada
July 8, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Monday, as a rally in CBOT soybeans encouraged some short-covering in the Winnipeg market as well.
Gains in CBOT soybeans accounted for most of the spillover strength in canola, with some buy stops hit along the way, according to traders.
Continued weakness in the Canadian dollar, tight old crop supplies, and uncertainty over new crop production were also supportive for canola, said participants.
While canola crops across western Canada are in good shape for the most part, there are still enough areas of concern to underpin the market as well. Excessive moisture continues to cause problems in some areas, while heat stress was also starting to be noticed in parts of the Prairies, said traders.
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A softer tone in CBOT soyoil did put some pressure on canola values, limiting the upside potential. Steady farmer selling was also said to be coming forward to weigh on prices.
About 11,040 canola contracts were traded on Monday, which compares with Friday when 7,997 contracts changed hands. Spreading accounted for 2,566 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
