By Dwayne Klassen, Commodity News Service Canada
February 22, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Friday’s session on the defensive with the taking of profits ahead of the weekend fueling some of the downward price action, market watchers said.
Sentiment that canola futures were overbought and in need of a correction to the downside, helped to weigh on values, traders said.
The declines in CBOT soybean and soyoil futures contributed to the price weakness in canola as did the beneficial rainfall in the soybean growing regions of Argentina.
Speculative and commodity fund liquidation was also evident in canola and further undermined values, traders said.
The triggering of sell-stop orders on the way down helped to amplify the price declines.
Underlying support in canola, however, continued to come from concerns about tight old crop supplies. Light scale down domestic crusher demand helped to restrict the price weakness with the pricing of old export business by commercials also slowing the downward price slide.
The continued downswing in the value of the Canadian dollar also provided some underlying support to canola.
Spreading continued to be a feature of the activity in canola and helped to bolster the volume total.
There were an estimated 22,896 canola contracts traded Friday, down from the 28,246 contracts that changed hands during the previous session. Of the contracts that changed hands, 13,896 were spread related.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton