By Terryn Shiells, Commodity News Service Canada
November 20, 2013
WINNIPEG – ICE Futures Canada Canola contracts closed lower on Wednesday, with the January contract nearing the key support level of C$480 per tonne.
Reports of high oil content in this year’s US soybean crop were also bearish, as it creates stronger competition for the Canadian canola crop, analysts said.
Some of the price softness was also linked to the stronger Canadian dollar, which made canola less attractive to crushers and exporters.
The large Canadian canola supply situation also continued to overhang prices.
However, the losses were limited by spillover support from the gains seen in Malaysian palm oil and Chicago soyoil futures.
Some technical based buying at the lows and a lack of significant farmer selling were also supportive.
About 18,390 canola contracts were traded on Wednesday, which compares with Tuesday when 29,350 contracts changed hands. Spreading accounted for 7,964 of the trades made.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
