By Phil Franz-Warkentin, Commodity News Service Canada
April 29, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher on Monday, as a rally in the CBOT corn and soybean markets spilled over to provide support.
Concerns over US planting delays saw CBOT corn post limit-up gains on Monday. The strength in corn pulled most other North American grains and oilseeds up as well, including canola.
The late spring and likely planting delays across western Canada added to the firmer tone in canola, according to participants. Chart signals were also supportive, as canola was said to be seeing a corrective bounce after heavy liquidation caused values to lag relative to soybeans recently.
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Light commercial buying interest and positioning ahead of the end of the month helped underpin the futures as well, said traders.
A firmer tone in the Canadian dollar did serve to limit the upside in canola, said participants. Weakness in CBOT soyoil was another bearish influence, causing crush margins to decline.
Ideas that canola was still looking expensive compared to other oilseeds also put some pressure on values.
About 21,899 canola contracts were traded on Monday, which compares with Friday when 18,925 contracts changed hands. Inter-month spreading was a feature, accounting for about 13,124 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
