|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 6, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed higher on Tuesday, seeing a bit of a short-covering bounce after recent declines. Gains in CBOT soybeans and ideas the losses in canola were overdone from a technical standpoint accounted for most of the strength, according to participants.
Concerns that Canadian canola supplies will be very tight before the end of the current crop year were also supportive, leading to some bargain-hunting from end users, said traders. However, a broker cautioned that canola may not have much room to the upside, despite the tightening supplies, but may just decline to a lesser extent than other oilseeds going forward.
The nearby technical bias has also shifted to the downside in canola, which limited the short-covering correction. Improving crop prospects in South America and expectations for an upward revision to the size of the US soybean crop in Friday’s USDA supply/demand report also weighed on values.
About 9,920 canola contracts were traded on Tuesday, which compares with Monday when 16,309 contracts changed hands. Spreading accounted for about 3,600 of the contracts traded.
Milling wheat and durum were untraded and unchanged. Barley did see some light commercial activity, but settled with no change in price.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Jan 600.50 up 10.70
Mar 597.30 up 11.30
May 592.50 up 14.00
Milling Wheat Dec 308.50 unch
Mar 318.00 unch
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 22, 2013
Prices are in Canadian dollars per metric ton