By Terryn Shiells, Commodity News Service Canada
July 10, 2013
WINNIPEG – ICE Futures Canada canola contracts closed higher on Wednesday, following the gains seen in outside oilseed markets.
Much of the strength in canola was linked to the commodity following the gains seen in Chicago soybeans and soyoil.
Traders were said to be building a weather premium into the Chicago soybean market amid concerns about hot and dry conditions causing damage.
Spill over buying from the European rapeseed futures market added to the bullish tone, as did continued concerns about the tight supply situation.
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Some worries about adverse weather harming crops in western Canada, as some areas are too hot and dry, while others are too wet, also fuelled some of the advances.
However, ideas that the majority of western Canada’s canola crop is generally off to a good start helped to limit the upside potential in canola.
The upswing in the value of the Canadian dollar also served to temper the gains.
About 14,440 canola contracts were traded on Wednesday, which compares with Tuesday when 10,608 contracts changed hands. Spreading accounted for 6,772 of the contracts traded.
Milling wheat, durum and barley futures were untraded on Wednesday. Though, the ICE exchange adjusted prices for milling wheat and durum futures. Barley prices were unchanged.
Settlement prices are in Canadian dollars per metric ton.
