By Phil Franz-Warkentin, Commodity News Service Canada
August 22, 2013
Winnipeg – ICE Futures Canada canola contracts settled with small losses in the most active contracts on Thursday, after trading to both sides of unchanged and posting gains for most of the session.
Losses in CBOT soybeans and soyoil due to improving US moisture conditions accounted for some of the spillover selling pressure in the canola market, according to participants.
Increased farmer selling, as harvest operations get underway and concerns over an early frost start to subside, contributed to the weaker tone in canola.
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However, canola lagged soybeans to the downside. Recent weakness in the Canadian dollar, which was down relative to its US counterpart once again on Thursday, provided some underlying support for canola. The softer currency helps crush margins improve and makes prices more attractive to international buyers.
The nearby chart signals have turned higher, which helped underpin canola for most of the day as well with some speculative short-covering coming forward to provide support, said a broker.
About 19,256 canola contracts were traded on Thursday, which compares with Wednesday when 18,594 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday after the grains saw some minor adjustments following Wednesday’s close.
Settlement prices are in Canadian dollars per metric ton.
