By Phil Franz-Warkentin, Commodity News Service Canada
October 16, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Wednesday, boosted by a rally in the CBOT soy complex.
Soyoil led to the upside in the US market, which benefitted canola as the Canadian oilseed has a higher oil content than soybeans.
Gains in Malaysian palm oil, European rapeseed, and crude oil added to the firmer tone in canola. Talk of fresh export demand, likely from China, also contributed to the gains in canola, according to participants.
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However, the record large crop grown in Western Canada this year remained a bearish influence overhanging the market, with the gains encouraging some farmer selling at the highs, said traders.
The stronger Canadian dollar, which was up by nearly half a cent relative to its US counterpart, was also limiting the advances in canola. The firmer currency cuts into crush margins, which limited the demand from domestic processors.
About 36,361 canola contracts were traded on Wednesday, which compares with Tuesday when 32,502 contracts changed hands. The November/January spread was a feature of the activity as participants were rolling out of the front month.
Milling wheat, durum and barley futures were untraded after wheat saw some price adjustments following yesterday’s close.
Settlement prices are in Canadian dollars per metric ton.
