By Phil Franz-Warkentin, Commodity News Service Canada
September 19, 2013
Winnipeg – ICE Futures Canada canola contracts were mixed on Thursday, although the most active months were lower as declines in CBOT soybeans and burdensome Canadian production prospects weighed on values.
The advancing Canadian harvest, expectations for a record large crop, and steady farmer hedges all contributed to the softer tone in canola, said traders.
The general technical trend also remains pointed lower for canola, which made the early advances a good selling opportunity from a chart standpoint.
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However, reports of harvest delays in some parts of Western Canada, due to recent rainfall, were somewhat supportive for prices, said a broker.
Solid end user demand from exporters and domestic crushers, as canola looks attractively priced at current levels, also helped limit the eventual losses. Gains in CBOT soyoil and a softer tone in the Canadian dollar accounted for some underlying support in canola as well.
About 30,845 canola contracts were traded on Thursday, which compares with Wednesday when 21,371 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
