By Terryn Shiells, Commodity News Service Canada
September 24, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were stronger at 10:43 CDT Tuesday, as commercial buying following Monday’s lows came in to support values, brokers said.
Some speculative short covering following recent losses also helped to underpin canola, as did the need to keep a weather premium built into prices until harvest is complete.
The downswing in the value of the Canadian dollar added to the bullish tone, as it made canola more attractive to crushers and foreign buyers.
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Some of the strength in canola was also linked to spillover support from the advances seen in outside oilseed markets, including Chicago soybeans and European rapeseed futures.
However, the gains were limited by continued pressure from the advancing harvest in Western Canada, which is showing very good canola yields so far.
A pickup in farmer selling off the combine, as there’s not enough bin space for the huge crop that’s coming off, was also bearish.
As of 10:43 CDT Tuesday, about 17,886 contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following price revisions after the close on Monday.
Prices in Canadian dollars per metric ton at 10:43 CDT:
