|By Phil Franz-Warkentin, Commodity News Service Canada|
|July 30, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed higher on Monday, as sharp gains in the CBOT soy complex spilled over to provide support. The US Midwest remains stuck in the middle of its most severe drought in decades, and the continued hot, dry forecasts had traders adding to the weather premiums in CBOT soybeans on Monday, according to market participants.Advances in outside oilseed markets, including Malaysian palm oil and European rapeseed futures contributed to the resulting spillover buying interest in canola. Speculators were some of the noted buyers, with some buy-stops hit on the way up.
However, a lack of fresh export demand limited the advances in canola, said a broker.
Generally good conditions for the development of canola in western Canada, and start of early harvest operations in Manitoba also tempered the gains. Increased farmer selling and ideas canola was looking overpriced compared to other oilseeds slowed the advances as well, said traders.
From a technical standpoint, canola was said to be consolidating after last week’s declines. Support for the most active November contract was seen at C$600 per tonne, with resistance at C$630.
About 12,500 canola contracts were traded on Monday, which compares with Friday when 9,761 contracts changed hands. Milling wheat, durum, and barley futures were all untraded and unchanged.
Canola Nov 623.60 up 15.70
Jan 626.30 up 16.10
Mar 627.50 up 15.50
Milling Wheat Oct 327.50 unch
Dec 335.00 unch
Durum Oct 330.40 unch
Dec 334.90 unch
Barley Oct 264.50 unch
Dec 269.50 unch
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton