By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 28, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Thursday, as solid end-user demand and spillover from the gains in CBOT soybeans provided support.
Exporters were said to be in the market pricing some new business, accounting for some of the strength in the futures, according to participants. Domestic crushers also continue to show good demand.
Weakness in the Canadian dollar, which was down by about half a cent relative to its US counterpart, added to the firmer tone, said traders.
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Continued concerns over the tightening Canadian canola supply situation and the need to ration demand were also supportive.
However, declines in some outside markets, including CBOT soyoil and Malaysian palm oil, did temper the gains. Scale-up farmer selling and ideas that canola was looking overpriced compared to other oilseeds put some pressure on values as well, said traders.
About 13,970 canola contracts were traded on Thursday, which compares with Wednesday when 23,289 contracts changed hands. Spreading accounted for about 6,062 of the contracts traded, with the narrowing-in of the March/May spread a feature.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
