By Terryn Shiells, Commodity News Service Canada
August 29, 2013
WINNIPEG – ICE Futures Canada canola contracts closed weaker on Thursday, following a choppy day that saw prices move to both sides of the plus minus line.
Some of the weakness in the market was linked to spillover pressure from the losses seen in outside oilseed markets, including Chicago soyoil, soybeans, Malaysian palm oil and European rapeseed.
Steady farmer hedging following a sharp rally seen earlier in the week helped to generate some of the downward price action, brokers said.
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Expectations that western Canadian farmers will harvest a record large canola crop this fall were also bearish.
However, the losses were limited by the downswing in the value of the Canadian dollar, as it increased export and crusher demand.
The need to keep a weather premium built into prices because there’s still a chance of frost before harvest in Western Canada provided further support.
About 30,241 canola contracts were traded on Thursday, which compares with Wednesday when 22,754 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday following slight price revisions after the close on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
