By Terryn Shiells, Commodity News Service Canada
July 17, 2013
WINNIPEG – ICE Futures Canada canola contracts closed firmer on Wednesday, lifted by spill over support from the gains seen in Chicago soyoil, analysts said.
The downswing in the value of the Canadian dollar was also responsible for some of the price firmness, as it made canola more attractive to foreign buyers.
The need to keep a weather premium built into the market provided further support, as did some short covering.
Brokers noted that some of the speculative selling pressure seen in the market recently has eased, which in turn provided some underlying support for canola.
However, spill over pressure from the losses seen in Chicago soybeans helped to limit the advances.
Reports that many canola fields in western Canada are developing well, amid generally good weather, also put downward pressure on the market.
About 10,572 canola contracts were traded on Wednesday, which compares with Tuesday when 14,115 contracts changed hands.
Milling wheat, durum and barley futures were untraded on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
