By Phil Franz-Warkentin, Commodity News Service Canada
November 27, 2013
Winnipeg – ICE Futures Canada canola contracts settled narrowly mixed on Wednesday, with small losses in the most active nearby contracts and a firmer tone in the more deferred positions.
Early advances in CBOT soybeans provided some spillover support, but the US soy complex turned lower as the day progressed and canola also backed away from its highs.
Canada’s record large crop and logistical issues moving those large supplies were also overhanging the market, said traders.
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However, the weaker Canadian dollar, which was down by about half a cent relative to its US counterpart, kept canola well supported as the softer currency helped boost the already strong crush margins.
In addition to the resulting domestic processor demand, recent activity has also shifted the nearby technical bias higher in canola, which encouraged some light chart-based short-covering.
Positioning ahead of the US Thanksgiving holiday was another feature. US markets will be closed Thursday and only opened for a shortened session on Friday, while Canadian markets will continue to trade their normal hours.
About 30,087 canola contracts were traded on Wednesday, which compares with Tuesday when 16,416 contracts changed hands. Spreading accounted for 20,344 of the contracts traded.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
