By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 13, 2013
Winnipeg – ICE Futures Canada canola contracts closed with solid gains on Wednesday, recovering from early declines as oversold price sentiment and supportive fundamentals helped values settle at their highs for the day.
The nearby March canola contract had dropped by as much as C$7.00 per tonne at one point during the session, as the speculative selling that’s pressured prices all week continued to weigh on values, said traders. However, support was uncovered at the lows and the futures saw a technical bounce. Gains in CBOT soyoil provided some spillover support.
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The losses earlier this week helped crush margins improve, which underpinned the canola market as well, according to participants. Tightening supplies in western Canada, and the need to ration demand going forward, remained supportive from a fundamental standpoint as well, said an analyst.
Farmers made heavy deliveries over the past week, and the fact that they were now backing away from the market was also supportive, according to participants.
About 18,587 canola contracts were traded on Wednesday, which compares with Tuesday when 19,574 contracts changed hands. Spreading accounted for about 14,912 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although durum prices were revised slightly lower after the close.
Settlement prices are in Canadian dollars per metric ton.
