By Phil Franz-Warkentin, Commodity News Service Canada
June 19, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Wednesday, taking some direction from the gains in CBOT soybeans and soyoil. A lack of farmer selling, routine end user demand, and uncertainty over new crop production helped underpin the futures as well, according to participants.
Aside from a few problem areas, crop conditions are said to be looking favourable for canola across most of western Canada. While the good crop prospects were tempering the upside potential, old crop supplies are tight and the need to keep some weather premiums in the market through the growing season kept values well supported, said trades.
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Technical signals contributed to the gains in canola, as values continued to see a bit of a bounce off of the nearby lows posted earlier in the week.
Large South American soybean supplies overhanging the oilseed markets and profit-taking at the session highs did temper the advances.
About 18,164 canola contracts were traded on Wednesday, which compares with Tuesday when 16,075 contracts changed hands. Spreading accounted for about 8,948 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
