By Phil Franz-Warkentin, Commodity News Service Canada
October 18, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger at Friday’s close, as steady end user buying interest and spillover from the gains in CBOT soyoil helped underpin the market ahead of the weekend.
Malaysian palm oil and European rapeseed futures were also stronger on Friday, which contributed to the firmer tone in canola, according to participants.
Exporters and domestic crushers continued to show good demand, as canola remains attractively priced compared to other oilseeds.
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However, canola was holding range-bound overall with technical resistance to the upside limiting the gains.
Canada’s record large canola crop also remained a bearish influence, making any advances good selling opportunities, according to a broker. Farmer hedges were said to be picking up at the highs.
About 22,021 canola contracts were traded on Friday, which compares with Thursday when 31,464 contracts changed hands. The November/January spread was a feature of the activity as participants were rolling out of the front month.
Milling wheat, durum and barley futures were untraded after wheat saw some price adjustments following Thursday’s close.
Settlement prices are in Canadian dollars per metric ton.
