By Phil Franz-Warkentin, Commodity News Service Canada
August 8, 2013
Winnipeg – ICE Futures Canada canola contracts were stronger on Thursday, seeing a continued corrective bounce off of the lows set earlier in the week.
Oversold price sentiment was behind much of the buying interest in canola, with speculators said to be covering short positions and booking profits. Gains in CBOT soybeans contributed to the firmer tone in canola, said traders.
Solid end user demand was also supportive, with domestic crushers believed to be buying canola while selling CBOT soyoil during the session.
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Uncertainty over US soybean production prospects was also underpinning canola values, according to a broker. However, a lack of immediate concern over the state of the Canadian canola crop did limit the upside potential, with forecasts turning warmer heading into the next week.
Strength in the Canadian dollar, which was up by nearly a cent relative to its US counterpart, also limited the gains in canola.
About 11,467 canola contracts were traded on Thursday, which compares with Wednesday when 17,835 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday after seeing some price revisions following Wednesday’s close.
Settlement prices are in Canadian dollars per metric ton.
