By Phil Franz-Warkentin, Commodity News Service Canada
August 19, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Monday, rallying to their highest levels in a month as gains in the CBOT soy complex spilled over to provide support.
While canola crops are generally thought to be in good shape across western Canada, traders said the market was taking most of its direction from the US soy complex where mounting concerns over hot and dry US weather conditions caused soybeans to rally.
Speculative short covering added to the gains in canola, with a move above nearby support triggering some additional buying.
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However, scale up hedge selling did limit the advances, as did the expectations for a large canola crop this year.
Statistics Canada releases its first official production estimates of the year this upcoming Wednesday, August 21 and traders generally expect the canola crop to come in well above the 13.3 million tonnes grown last year.
About 13,146 canola contracts were traded on Monday, which compares with Friday when 8,730 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
