WINNIPEG, Manitoba--The ICE Futures canola market was stronger on Wednesday, after trading to both sides of unchanged in choppy activity.
Canola mainly followed the Chicago Board of Trade soyoil futures, which saw some wide price swings during the day but were stronger at the close. European rapeseed futures set fresh highs overnight, which provided some additional support.
The tight supply situation and need to ration demand remained another bullish influence for canola.
However, canola is looking overpriced compared to other options, and demand is already backing away at these price levels.
Strength in the Canadian dollar also weighed on values.
About 26,769 canola contracts traded on Wednesday, which compares with Tuesday when 29,076 contracts changed hands.
Spreading was a feature, accounting for 20,902 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Nov 867.40 up 6.80 Jan 860.30 up 5.40 Mar 851.60 up 6.40 May 836.50 up 6.80
Spread trade prices are in Canadian dollars and the volume represents the number of spreads:
Months Prices Volume Nov/Jan 7.40 over to 5.30 over 5,607 Nov/Mar 17.00 over to 13.50 over 1,021 Nov/May 31.00 over to 30.00 over 104 Jan/Mar 10.20 over to 7.40 over 2,095 Jan/May 25.20 over 337 Mar/May 16.10 over to 14.80 over 996 May/Jul 22.00 over to 20.00 over 244 Jul/Nov 120.00 over to 108.80 over 47
Source: Commodity News Service Canada
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(END) Dow Jones Newswires