By Terryn Shiells, Commodity News Service Canada
August 15, 2013
WINNIPEG – ICE Futures Canada canola contracts closed stronger Thursday, with the November contract finishing just above the key resistance level of C$500 per tonne.
Some buy stops were hit at the C$500 per tonne level, but had trouble moving much higher than that because of a pickup in farmer selling, brokers said.
Much of the rally seen in canola values was linked to spill over support from the gains seen in outside oilseed markets, including the Chicago soybean complex, Malaysian palm oil and European rapeseed futures.
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Rumours of fresh export demand due to recent weaker prices added to the bullish tone, though nothing has been confirmed.
Continued concerns about tight old crop supplies and about slow crop development in Western Canada further underpinned values.
However, the upswing in the value of the Canadian dollar and forecasts calling for warmer weather across the Prairies over the next few days limited the gains.
About 19,658 canola contracts were traded on Thursday, which compares with Wednesday when 11,461 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday after wheat experienced some slight price revisions after the close on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
