By Phil Franz-Warkentin, Commodity News Service Canada
November 6, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small losses at 10:33 CST Wednesday, as the firmer Canadian dollar and positioning ahead of Friday’s USDA supply/demand report weighed on values.
The USDA will release its first supply/demand report in two months on Friday, and traders were generally said to be showing some caution ahead of the data. While CBOT soybeans were posting small gains at midsession, expectations for upward revisions to the size of the US soybean crop did remain bearish overall. Relatively favourable conditions for soybeans in South America also put some pressure on the canola market.
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A firmer tone in the Canadian dollar, which was up by about a third of a cent relative to its US counterpart, weighed on prices as well, said traders.
However, a continued lack of significant farmer selling and steady end user demand did help underpin the futures. Solid technical support was also holding, with canola keeping rangebound overall.
About 7,000 canola contracts had traded as of 10:33 CST.
Milling wheat, durum, and barley futures were untraded on Wednesday.
Prices in Canadian dollars per metric ton at 10:33 CST:
