By Terryn Shiells, Commodity News Service Canada
August 13, 2013
WINNIPEG – ICE Futures Canada canola contracts closed firmer on Tuesday, lifted by spill over support from the advances seen in Chicago soyoil, analysts said.
The downswing in the value of the Canadian dollar further underpinned canola prices, as it helped improve crush margins and make the commodity more attractive on the export market.
Worries about recent cooler temperatures slowing crop development in Western Canada, which could make canola more susceptible to frost damage this fall, were also bullish.
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However, forecasts are calling for warmer weather across the Prairies later this week, which could help speed up development.
The gains in canola were limited by technical weakness, as the bias still remains pointed to the downside, according to brokers.
About 18,739 canola contracts were traded on Tuesday, which compares with Monday when 13,056 contracts changed hands. Spreading was a feature of the trade and helped to augment the volume total.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday after seeing some price revisions by the Exchange after the close on Monday.
Settlement prices are in Canadian dollars per metric ton.
