By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 14, 2013
Winnipeg – ICE Futures Canada canola contracts closed higher, as solid end user demand and bullish technicals provided support
The tightening supply situation in western Canada kept exporters and domestic crushers on the buy side, as they look to cover their commitments, according to a trader.
Follow-through speculative buying on Wednesday’s firmer close was also supportive, said participants.
However, the weaker tone in CBOT soybeans for most of the day did put some pressure on canola. Expectations for large South American crops and poor export demand were behind the softer tone in the US futures.
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Steady farmer selling put some pressure on canola as well, although farmer deliveries were said to be slowing down after they made large sales at the highs earlier in the month.
About 19,383 canola contracts were traded on Thursday, which compares with Wednesday when 18,587 contracts changed hands. Spreading accounted for about 16,350 of the contracts traded.
Milling wheat, and barley futures were untraded and unchanged. Durum saw a handful of trades in the final minutes, dropping five dollars per tonne in the front month.
Settlement prices are in Canadian dollars per metric ton.
