By Terryn Shiells, Commodity News Service Canada
August 12, 2013
WINNIPEG – ICE Futures Canada canola contracts closed stronger on Monday, reacting to a USDA report that was bullish for the Chicago soybean complex, analysts said.
The USDA estimated US soybean production would total 3.255 billion bushels in 2013/14, which was lower than their previous guess and what traders expected. The news sparked a rally in the Chicago soybean complex, and canola futures followed along.
Canola also found some spill over support from the gains seen in Malaysian palm oil and European rapeseed futures overnight.
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A strong demand outlook for 2013/14 and some concerns about cooler weather slowing crop development in western Canada also underpinned values.
The downswing in the value of the Canadian dollar provided further support, as it made canola more attractive to foreign buyers.
However, ideas that the Canadian canola crop will be large if it can avoid fall frosts were bearish, as was technical weakness.
About 13,056 canola contracts were traded on Monday, which compares with Friday when 8,712 contracts changed hands. Spreading accounted for 5,406 of the trades made.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
