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ICE Canada review: canola firms, USDA report supportive

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Published: November 8, 2013

By Terryn Shiells, Commodity News Service Canada

November 8, 2013

WINNIPEG – ICE Futures Canada canola contracts closed firmer on Friday, following the sharp advances seen in the Chicago soybean market after the release of the USDA’s supply and demand report at 11:00 CST.

The report was supportive for soybeans and canola futures, as it pegged US and global ending stocks below expectations for soybeans due to strong export demand.

Further support for canola futures came from the downswing in the value of the Canadian dollar, which made the commodity more attractive to crushers and exporters.

However, spillover pressure from the declines seen in Chicago soyoil, European rapeseed and Malaysian palm oil futures helped to limit the upside in canola.

The large Canadian canola supply situation and expectations of a record large South American soybean crop continued to overhang the market.

About 31,691 canola contracts were traded on Friday, which compares with Thursday when 23,536 contracts changed hands.

Milling wheat, durum and barley prices were untraded and unchanged.

Settlement prices are in Canadian dollars per metric ton.

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