By Dwayne Klassen, Commodity News Service Canada
May 29, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Wednesday’s session on a mostly firmer footing with only July suffering any sort of price setback. Canola had traded at mainly lower levels for the bulk of the session reacting to the taking of profits and the losses displayed by CBOT soybean and soyoil values, market watchers said.
However, a late short-covering rally helped to take the deferred canola futures up. Some of that strength was linked to the small upturn in the deferred CBOT soybean contracts, brokers said.
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Additional support in the deferred canola contracts came from steady commercial buying, believed to be covering routine export demand as well as some domestic crusher needs, brokers said.
The upside in canola was tempered in part by the small upswing in the value of the Canadian dollar. Chart-based liquidation by speculative and commodity fund accounts had also put some downward pressure on canola earlier in the day. The losses in CBOT soyoil values further restricted the upside in canola.
Some of the selling seen in canola also came from reports that planting of the crop in western Canada was progressing at a good pace, and that early seeded fields were developing well, traders said.
The large supply of South American soybeans on the global market also capped some of the price gains.
There were an estimated 27,533 canola contracts traded Wednesday, down from the 23,277 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
