By Phil Franz-Warkentin, Commodity News Service Canada
June 26, 2013
Winnipeg – ICE Futures Canada canola contracts were mixed on Wednesday, with most months posting large losses aside from the nearby July contract.
Tight supplies and traders exiting short positions in the front month accounted for the strength in July, according to participants. Meanwhile, increased farmer selling, relatively favourable crop conditions, losses in outside markets, and the firmer Canadian dollar all combined to weigh on values.
With seeding operations finished for the year, farmers in western Canada were said to back in the market pricing some of their canola. The increased contracting in the country found its way into the futures to weigh on values, said a trader.
Read Also
ICE Midday: Canola retreats further into the red
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange remained lower in the middle of trading on Tuesday…
Losses in gold and crude oil, along with the softer tone in CBOT soyoil and the strength in the Canadian dollar, added to the weaker tone in canola, said participants.
Relatively favourable weather conditions for crop development across most of western Canada weighed further on values, although there are also still enough areas of concern to keep some weather premiums in the market, said a trader.
Scale-down end user demand helped limit the losses as well. Tight old crop supplies were another supportive influence, and the lightly traded July contract was higher at the close.
About 14,719 canola contracts were traded on Wednesday, which compares with Tuesday when 15,554 contracts changed hands. Spreading accounted for about 5,300 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
