By Phil Franz-Warkentin, Commodity News Service Canada
September 3, 2013
Winnipeg – ICE Futures Canada canola contracts settled narrowly mixed on Tuesday, finishing well off their session highs as the early fund-related buying ran out of steam and expectations for a large crop weighed on values.
A rally in CBOT soybeans, brought on by weather concerns and possible yield losses there, accounted for some spillover fund buying interest in canola for most of the session, according to participants.
However, canola failed to hold onto its advances as the fundamentals are looking much less bullish as far as the Canadian crop is concerned. The November contract had posted gains of nearly C$12.00 per tonne at one point, but settled with a ten cent loss.
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Expectations for a record large Canadian canola crop kept exporters and domestic crushers from chasing the market higher, accounting for some of the eventual weakness, said traders. The early gains also uncovered some farmer hedges, although widening basis levels were limiting the selling interest to some extent.
CBOT soyoil was the weak link in the soy complex, and the losses in soyoil also served to keep canola well off its highs for the day by the close.
About 23,432 canola contracts were traded on Tuesday, which compares with Friday when 14,559 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged after seeing some price adjustments following Friday’s close.
Settlement prices are in Canadian dollars per metric ton.
