By Terryn Shiells, Commodity News Service Canada
December 31, 2013
WINNIPEG – ICE Futures Canada Canola contracts were slightly firmer on Tuesday, amid choppy, quiet trade ahead of the New Year. Position squaring was a noted feature, as the market will be closed Wednesday to observe New Year’s Day.
Short covering ahead of the New Year helped to provide some support, as did ideas that canola is undervalued compared to other oilseeds.
Further spillover support came from the advances seen in Chicago soyoil and Malaysian palm oil futures.
However, spillover pressure from the declines seen in Chicago soybean values further undermined prices.
The large Canadian canola crop, logistical problems in Western Canada and good weather for South American soybeans continued to overhang the market.
About 12,875 canola contracts were traded on Tuesday, which compares with Monday when 23,558 contracts changed hands. Spreading accounted for 9,108 of the trades.
Milling wheat, durum and barley prices were untraded following price revisions after the close on Monday.
Settlement prices are in Canadian dollars per metric ton.
