Dec. 3, 2012
Winnipeg – ICE Futures Canada canola contracts were lower at Monday’s close, retreating from earlier advances as speculative profit-taking weighed on values.
After initially moving up in sympathy with CBOT soybeans, canola eventually turned lower as the rally in soybeans ran out of steam, said participants.
Speculative selling was a feature in the canola market, as a downturn in the outside financial markets had investors looking to exit some of their riskier positions, said a broker.
Technical resistance was also a factor, as the January canola contract briefly tested the psychological C$600 per tonne level in overnight activity before retreating.
The losses were tempered by a lack of significant farmer selling, with most producers now content to wait until the New Year to make more sales. Scale-down end user demand was also supportive.
Statistics Canada releases its final production estimates of the year on Wednesday, December 5, and positioning ahead of the report was a feature. General expectations on the size of the canola crop ranging from about 13 million to 14 million tonnes.
About 13,332 canola contracts were traded on Monday, which compares with Friday when 11,659 contracts changed hands. Spreading was a feature, accounting for about 10,342 of the contracts traded. Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Jan 591.90 dn 2.40
Mar 591.50 dn 2.60
May 590.80 dn 1.80
Milling Wheat Dec 300.60 unch
Mar 308.60 unch
Durum Dec 312.00 unch
Mar 316.00 unch
Barley Dec 245.00 unch
Mar 248.00 unch
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton