By Terryn Shiells, Commodity News Service Canada
January 7, 2014
WINNIPEG – ICE Futures Canada Canola contracts closed weaker on Tuesday, after bouncing around on both sides of unchanged throughout the day.
Spillover pressure from the losses seen in other oilseeds, including the Chicago soy complex, Malaysian palm oil and European rapeseed futures were bearish.
Weakness in the Canadian cash market, due to logistical problems and huge canola supplies, put further downward pressure on prices, traders said.
The liquidation of positions ahead of the January 10 USDA report, due to expectations that the US soybean crop will be revised higher, also undermined values.
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However, the sharp downswing in the value of the Canadian dollar limited the losses, as it encouraged some buying from crushers. The Canadian dollar was down almost a full cent against the US dollar Tuesday afternoon.
Continued ideas that canola is more attractively priced than other oilseeds kept a firm floor under the market.
Activity was starting to return to normal after lackluster trade during the holiday season. About 19,790 canola contracts were traded on Tuesday, which compares with Monday when 6,624 contracts changed hands. Spreading accounted for 14,500 of the trades.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
