|By Phil Franz-Warkentin, Commodity News Service Canada|
|July 31, 2012|
|Winnipeg – ICE Futures Canada canola contracts traded to both sides of unchanged in choppy activity for most of the day on Tuesday, before speculative action in the final minutes boosted prices sharply higher at the close.
Commercials and speculators were both noted buyers in canola, while a lack of significant farmer selling forced end-users to pay up, said participants. The relatively thin volumes in the market were said to have exaggerated the eventual move higher. With little fresh news of its own to provide direction, canola was largely a follower of the equally choppy US soybean market for most of the day.
Advances in the CBOT soybean complex earlier in the session, fueled by drought conditions in the US Midwest, were responsible for some of the upward price action seen in canola, said participants. However, soybeans turned lower by the close and canola managed to show some independent strength.
Generally good conditions for the Canadian canola crop and expectations for record production did temper the advances in the market, said traders. The recent strength in the Canadian dollar and technical resistance to the upside also limited the gains.
About 15,255 canola contracts were traded on Tuesday, which compares with Monday when 12,500 contracts changed hands. Milling wheat, durum, and barley futures were all untraded, although wheat and durum were both revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 631.30 up 7.70
Jan 633.50 up 7.20
Mar 635.00 up 7.50
Milling Wheat Oct 317.50 dn 10.00
Dec 325.00 dn 10.00
Durum Oct 325.50 dn 4.90
Dec 330.00 dn 4.90
Barley Oct 264.50 unch
Dec 269.50 unch
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton