By Phil Franz-Warkentin, Commodity News Service Canada
October 15, 2013
Winnipeg – ICE Futures Canada canola contracts were weaker on Tuesday, after trading to both sides of unchanged in choppy activity.
While gains in CBOT soyoil did provide some support for most of the day, soyoil was off its highs by the close. Losses in CBOT soybeans also put some pressure on canola. Speculators were noted sellers, as canola traded just above nearby chart support.
In addition, Canada’s record large canola crop remained a bearish influence overhanging the market, according to participants.
On the other side, good end user demand provided underlying support for canola. Processors were noted buyers, with the domestic crush running at nearly 90% capacity. Exporters were also on the buy side, with China said to be making purchases at current values.
About 32,502 canola contracts were traded on Tuesday, which compares with Friday when 32,554 contracts changed hands. Spreading accounted for 23,390 of the contracts traded. Canadian markets were closed Monday for Thanksgiving.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
