By Terryn Shiells, Commodity News Service Canada
August 28, 2013
WINNIPEG – ICE Futures Canada canola contracts closed mostly lower, following a day of choppy and volatile activity on Wednesday.
Some of the price weakness was linked to a pickup in farmer selling following Monday’s sharp advances, analysts said.
Continued profit taking following Monday’s rally added to the bearish tone.
Expectations that the Canadian canola crop will be record large this year, due to favourable growing conditions seen recently, further undermined values.
However, the losses were limited by spillover support from the advances seen in Chicago soybean and soyoil futures.
The need to keep a weather premium built into prices, as canola crops are still at risk of being damaged by frost, kept a firm floor under the market.
About 22,754 canola contracts were traded on Wednesday, which compares with Tuesday when 33,084 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
