By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 13/12 – Canola futures on the ICE Canada trading platform finished Tuesday’s session on the defensive with significant losses posted in a number of contracts. Declines were influenced by the huge sell-off seen in CBOT soybean and soyoil futures on Monday when the ICE Canada platform was closed in observance of Remembrance Day, market watchers said.
Sharp losses in European rapeseed futures on Monday added to the downward price momentum seen in canola.
The declines in canola were also spurred on by the triggering of speculative and commodity fund account selling, especially when values dropped below key technical support levels, brokers said. Sell-stops werre hit on the way down, amplifying the price drop.
Additional weakness in canola was linked to the improved weather conditions for the planting and development of the South American soybean crop.
Underlying support in canola came from scale-down commercial demand, with much of that interest said to be covering old export business as well as some domestic crusher needs, traders said.
The downturn seen in the value of the Canadian dollar helped to temper some of the price declines in canola. The reluctance of western Canadian farmers to deliver canola into the cash pipeline, also restricted some of the price declines.
There were an estimated 16,966 canola contracts traded Tuesday, up from the 14,157 contracts that changed hands during the previous session. Of the contracts that changed hands, 5,272 were spread related.
Milling wheat was untraded but values were lowered by ICE Canada at the close.
Barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton