By Phil Franz-Warkentin, Commodity News Service Canada
November 6, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Wednesday, backing away to the low end of its recent trading range as the firmer Canadian dollar and positioning ahead of Friday’s USDA report weighed on values.
The USDA will release its first supply/demand report in two months on Friday, and traders were generally said to be showing some caution ahead of the data. While CBOT soybeans posted small gains, they were well off their session highs and expectations for upward revisions to the size of the US soybean crop remained bearish for the oilseeds overall. Relatively favourable conditions for soybeans in South America, and the record large canola crop grown in Canada this year also put some pressure on the Winnipeg market, said traders.
Read Also
ICE canola posting solid gains at midday Tuesday
Glacier FarmMedia — The ICE Futures canola market was stronger at midday Tuesday, taking back Monday’s losses. Gains in Chicago…
A firmer tone in the Canadian dollar, which was up by about a third of a cent relative to its US counterpart, weighed on prices as well, according to participants.
However, a continued lack of significant farmer selling and steady end user demand did help underpin the futures. Technical support was also holding to the downside, with canola keeping rangebound overall.
About 22,005 canola contracts were traded on Wednesday, which compares with Tuesday when 18,587 contracts changed hands.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
