|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 3, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed higher on Wednesday, seeing a short-covering bounce as speculators squared positions ahead of Thursday’s Statistics Canada production report.
The advancing US soybean harvest and improving yield prospects accounted for some early selling in soybeans that spilled into canola, said a trader. Steady farmer deliveries were another bearish factor overhanging the canola market.
However, canola lagged the soy complex to the downside, and turned higher to post solid gains as speculative short-covering came forward to provide support. The recent losses also pushed some farmer selling to the sidelines while also encouraging fresh end user demand.
Positioning ahead of Thursday’s Statistics Canada production report also helped lend some independent strength to the canola market. The report is widely expected to show a smaller canola crop than previously forecast in August, but the extent of the cut remains to be seen.
About 27,139 canola contracts were traded on Wednesday, which compares with Tuesday when 17,557 contracts changed hands. Spreading accounted for about 20,654 of the contracts traded.
Milling wheat futures were untraded, but revised higher after the close. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton