By Phil Franz-Warkentin, Commodity News Service Canada
October 2, 2013
Winnipeg – ICE Futures Canada canola contracts settled within a dollar of unchanged on Wednesday, retreating from much larger inter-session gains by the close as the buying dried up and losses in CBOT soyoil spilled over to weigh on prices.
Canola initially saw a corrective bounce off of nearby lows and posted ten dollar per tonne gains at one point before running into resistance. The overall technical trend remains pointed lower, making the early advances a good selling opportunity, according to analysts. Farmer hedges were also said to have picked up at the highs.
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Gains in CBOT soybeans and European rapeseed provided some spillover support for canola, but CBOT soyoil was down sharply and Malaysian palm oil was also weaker in overnight activity.
Expectations for a record large Canadian canola crop remained a bearish influence overhanging the market. Statistics Canada releases its latest production estimates on Friday, and pre-report guesses are generally topping 16.0 million tonnes. That would compare with the previous StatsCan estimate of 14.7 million tonnes and the 13.9 million tonne crop grown in 2012.
About 27,794 canola contracts were traded on Wednesday, which compares with Tuesday when 23,047 contracts changed hands. Spreading accounted for 15,046 of the contracts traded.
Milling wheat, durum and barley futures were untraded.
Settlement prices are in Canadian dollars per metric ton.
