By Terryn Shiells, Commodity News Service Canada
November 21, 2013
WINNIPEG – ICE Futures Canada Canola contracts surged sharply higher on Thursday, following the rally seen in Chicago soyoil futures, analysts said.
Canola also found spillover support from the gains seen in other oilseed markets, including Chicago soybeans, Malaysian palm oil and European rapeseed futures.
Some of the strength in canola was also linked to the sharp downswing in the value of the Canadian dollar, which was down almost three-quarters of a cent. The weaker Canadian currency makes canola more attractive to crushers and exporters.
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Chart-based buying, as the market failed to follow- through on Wednesday’s declines, added to the bullish tone.
However, the large Canadian canola crop continued to overhang the market.
Reports that conditions are good so far for the upcoming soybean crop in South America were also bearish.
About 28,714 canola contracts were traded on Thursday, which compares with Wednesday when 18,390 contracts changed hands. Spreading was a large part of the trade, and accounted for 23,188 of the contracts that changed hands.
Milling wheat, durum and barley prices were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
