By Terryn Shiells, Commodity News Service Canada
November 5, 2013
WINNIPEG – ICE Futures Canada canola contracts closed weaker on Tuesday, correcting lower as Monday’s gains were seen as overdone, analysts said.
Some of the price softness in canola was linked to the large Canadian canola supply situation.
Spillover pressure from the losses seen in Chicago soybeans further undermined prices, as did good weather for the development of South America’s soybean crop.
However, the losses were limited by support from the weaker Canadian dollar, which made canola more attractive to crushers and exporters.
Continued slow farmer selling, as they’re waiting for stronger prices, kept a firm floor under the market.
The canola market is expected to remain rangebound overall until the November 8 USDA supply and demand report is released.
About 18,587 canola contracts were traded on Tuesday, which compares with Monday when 11,676 contracts changed hands.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
