By Terryn Shiells, Commodity News Service Canada
September 12, 2013
WINNIPEG – ICE Futures Canada canola contracts closed stronger on Thursday, underpinned by a bullish USDA report that lifted both canola and Chicago soybean markets, analysts said.
The USDA pegged 2013/14 ending stocks for US soybeans at 150 million bushels, which compares with their August estimate of 220 million and estimates of 165 million. The government agency pegged US soybean production at 3.149 billion bushels for 2013/14, which fell in line with expectations of 3.150 billion.
Some of the buying in canola was also technical in nature, as the November contract broke above they key resistance level of C$500 per tonne.
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Rumours of fresh export demand from China were also supportive, though nothing has been confirmed, traders said.
However, pressure from the advancing harvest in Western Canada, reports of good yields and expectations for a record large canola crop helped to limit the upside.
About 26,478 canola contracts were traded on Thursday, which compares with Wednesday when 24,228 contracts changed hands.
Barley, milling wheat and durum prices were untraded and unchanged following price revisions after the close on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
