By Phil Franz-Warkentin, Commodity News Service Canada
July 2, 2013
Winnipeg – ICE Futures Canada canola contracts closed mostly higher on Tuesday, correcting after recent declines as supportive technical signals and solid end-user demand underpinned the market.
The November canola contract fell to its lowest level in nearly two months in overnight trade, but uncovered some buying interest at the lows to correct higher. In addition to the speculative buying, solid crush margins were also leading to increased demand from domestic processors, said a trader.
Continued weakness in the Canadian dollar, which was back below 95 US cents, added to the firmer tone in canola.
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Relatively favourable growing conditions across western Canada did limit the upside potential in canola, with weather forecasts looking beneficial for crop development in most areas. However, excessive moisture does remain a concern in some fields, while other areas could do with some rain and cooler temperatures as the crop enters its flowering stage, said a trader.
About 11,117 canola contracts were traded on Tuesday, which compares with Friday when 15,176 contracts changed hands. Spreading accounted for 2,212 of the contracts traded. Canadian markets were closed Monday for Canada Day.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
