By Phil Franz-Warkentin, Commodity News Service Canada
October 17, 2013
Winnipeg – ICE Futures Canada canola contracts were lower at Thursday’s close, backing away from earlier advances as farmer hedges and speculative selling came forward to weigh on values.
Advances in CBOT soybeans helped underpin the canola market for most of the day, but declines in soyoil, Malaysian palm oil and European rapeseed futures limited the upside potential and the Canadian market eventually turned lower.
While solid export and domestic crusher demand remained supportive for canola, the end users buying interest slowed down as the day progressed. The record large crop grown in Western Canada this year also made the early advances a good selling opportunity, according to participants.
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The firmer tone in the Canadian dollar, which was up by about a third of a cent relative to its US counterpart, also weighed on canola, said traders.
About 31,464 canola contracts were traded on Thursday, which compares with Wednesday when 36,361 contracts changed hands. The November/January spread was a feature of the activity as participants were rolling out of the front month.
Milling wheat, durum and barley futures were untraded after wheat saw some price adjustments following yesterday’s close.
Settlement prices are in Canadian dollars per metric ton.
