|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 18, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed stronger on Tuesday, as commercial buying and speculative short-covering helped the market see a modest recovery from Monday’s sharp losses.
The declines on Monday helped uncover some commercial buying interest, with Japanese pricing of routine business accounting for some of the strength in the market, according to participants.
Domestic crushers were also said to be on the buy side, while a slowdown in farmer deliveries provided further support. Concerns over yield losses in parts of western Canada, as the harvest progresses, added to the bullish price sentiment. Reports of declining production prospects for the Australian canola crop were also supportive, said participants.
However, continued declines in the CBOT soy complex did serve to temper the upside potential in canola, said traders.
About 11,699 canola contracts were traded on Tuesday, which compares with Monday when 20,780 contracts changed hands. Spreading accounted for about 2,860 of the contracts traded.
Durum futures were higher in light commercial activity, while milling wheat was lower. Barley held steady, with the October/December spread the feature.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 626.40 up 4.80
Jan 630.20 up 4.80
Mar 631.40 up 4.90
Milling Wheat Oct 292.20 dn 2.40
Dec 298.00 dn 2.40
Durum Oct 310.10 up 3.20
Dec 314.60 up 3.20
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton