By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 30/12 – Canola futures on the ICE Canada trading platform ended Friday’s session on the defensive with pre-weekend, as well as end-of month profit-taking, accounting for some of the downward price action, market watchers said. Some of the liquidation also came ahead of next Wednesday’s Statistics Canada crop production survey release.
Additional weakness in canola was encouraged by the declines posted in CBOT soybean and soyoil futures. Losses overnight in Malaysian palm oil and European rapeseed futures also added to the bearish price sentiment in canola.
Chart based speculative and commodity fund selling further undermined canola futures.
The declines in canola were tempered by scale down commercial buying, believed to be covering old export business to Japan and some domestic processor needs, brokers said.
The continued slow pace of farmer deliveries into the cash pipeline in western Canada also helped to restrict the downward price action. The late day buying back of previously sold positions also trimmed the price declines seen by canola earlier in the session.
Continued concerns about the tight canola supply in Canada also tempered the price drop in canola.
There were an estimated 11,659 canola contracts traded Friday, down from the 13,890 contracts that changed hands during the previous session. Of the contracts that changed hands, 10,462 were spread related.
There were 72 milling wheat contracts traded during the day with most of that believed to be commercials rolling positions out of the nearby December future and into the March contract.
No durum wheat and barley contracts were traded.
Prices are in Canadian dollars per metric ton.
Futures Prices as of September 19, 2014
Prices are in Canadian dollars per metric ton