By Phil Franz-Warkentin, Commodity News Service Canada
October 30, 2013
Winnipeg – ICE Futures Canada canola contracts held onto small gains at Wednesday’s close, but settled well off their session highs as the market ran into some resistance to the upside.
Gains in the CBOT soy complex, especially soyoil, provided the catalyst for the move higher in canola, with a general lack of significant farmer selling contributing to the gains, according to participants.
While producers grew a record large crop this year, they have mostly met their cash flow needs for the time being and were said to be moving to the sidelines.
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Solid export and domestic crusher demand underpinned the Canadian futures as well.
However, in addition to Canada’s large crop, the advancing US soybean harvest and expectations for an increase in South American production did temper the gains in canola. Technical resistance also held to the upside.
About 27,284 canola contracts were traded on Wednesday, which compares with Tuesday when 23,686 contracts changed hands. Spreading accounted for 16,454 of the contracts traded.
Milling wheat, durum and barley futures were untraded after wheat saw some price adjustments following Tuesday’s close.
Settlement prices are in Canadian dollars per metric ton.
