By Phil Franz-Warkentin, Commodity News Service Canada
October 3, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were stronger at 10:45 CDT Thursday, taking some direction from the gains posted in the CBOT soy complex.
Positioning ahead of Friday’s Statistics Canada production report added to the firmer tone in canola, according to participants. While traders generally expect to see confirmation of a record large canola crop, the big yields have already been factored into the futures and ideas that StatsCan may be more conservative in their forecast encouraged some short covering, said a broker.
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However, the overall downtrend remains intact for canola, making any advances a good selling opportunity, according to traders. Farmer hedges were also said to be picking up at the session highs.
Weakness in the outside financial markets and the ongoing uncertainty surrounding the US government shutdown was also keeping some caution in the grain and oilseed markets, including canola, said a broker.
About 36,000 canola contracts had traded as of 10:45 CDT. The large volumes were tied to an increase in exchange for physical (EFP) activity, with business in the cash market being matched in the futures, said a broker.
Milling wheat, durum, and barley futures were untraded on Thursday after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:45 CDT:
