By Terryn Shiells, Commodity News Service Canada
October 24, 2013
WINNIPEG – ICE Futures Canada canola contracts closed weaker on Thursday, undermined by spillover pressure from the losses seen in Chicago soyoil, Malaysian palm oil and European rapeseed futures, analysts said.
Some of the weakness was also linked to a pickup in farmer selling following a recent rally, as well as the large Canadian canola stocks.
Expectations of a record large South American soybean crop and pressure from the advancing US soybean harvest added to the bearish tone.
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However, the losses were limited by support from the sharp downswing in the value of the Canadian dollar, which fell below the 96 cents US mark on Thursday. The weaker Canadian dollar encouraged crusher and exporter buying.
Chart-based buying, as the technical bias is now pointed higher, also kept a firm floor under the canola market.
About 36,296 canola contracts were traded on Thursday, which compares with Wednesday when 33,470 contracts changed hands. Spreading was a large feature, and accounted for 24,422 of the trades made.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
