Dec. 7, 2012
Winnipeg – ICE Futures Canada canola contracts closed lower on Friday, as bearish technical signals, spillover from the losses in CBOT soybeans, and an increase in farmer selling all weighed on prices.
The bounce seen earlier this week was said to have encouraged an increase in farmer sales, which accounted for the resulting hedge pressure in the market on Friday, according to participants.
Bearish technical signals added to the declines, as the failure of the January contract to show much follow-through strength above the psychological C$600 per tonne level weighed on prices as well, said a broker.
Losses in the CBOT soy complex and a firmer tone in the Canadian dollar added to the weakness in canola, said traders.
Concerns over tightening Canadian canola supplies did remain somewhat supportive, limiting the losses. Scale-down end user demand, as exporters and domestic crushers were taking advantage of the declines to book some coverage, was also supportive.
About 23,267 canola contracts were traded on Friday, which compares with Thursday when 13,117 contracts changed hands. Spreading was a feature, accounting for about 20,184 of the contracts traded.
Milling wheat futures were down in thin two-sided commercial activity. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Jan 598.60 dn 0.80
Mar 595.10 dn 2.00
May 593.30 dn 2.20
Milling Wheat Dec 289.20 dn 1.70
Mar 301.70 dn 1.70
Durum Dec 312.00 unch
Mar 316.00 unch
Barley Dec 245.00 unch
Mar 248.00 unch
Futures Prices as of June 19, 2013
Prices are in Canadian dollars per metric ton