|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 18, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed higher on Thursday, seeing a recovery from Wednesday’s declines as a rally in the CBOT soy complex spilled over to provide support.
Commercials and fund traders were both on the buy side in canola, according to a broker. The tightening supply situation in western Canada kept exporters and domestic crushers looking to secure some supplies while they still can, said participants.
In addition, the lack of follow-through selling on Wednesday’s late session declines had speculative fund traders looking to rebuild their long positions in canola.
The weaker Canadian dollar provided further support, as currency took back most of its gains from the previous session.
However, with the move higher in the futures farmer selling was also said to be picking up. The increased hedges did keep a lid on the gains in canola, said traders.
Ideas that canola is looking overpriced compared to other oilseed markets also weighed on values, and caused canola to lag soybeans to the upside.
About 19,350 canola contracts were traded on Thursday, which compares with Wednesday when 13,687 contracts changed hands. Spreading accounted for about 15,310 of the contracts traded.
Milling wheat futures were untraded, but were revised higher after the close. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 611.30 up 6.20
Jan 610.20 up 6.00
Mar 608.80 up 6.70
Milling Wheat Dec 301.90 up 3.00
Mar 311.40 up 3.00
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton