November 22, 2012
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 10:37 CST Thursday, amid very light activity as US markets were closed for their Thanksgiving Holiday. US markets will re-open Friday, but only for a few hours.
Canola values continued the weakness that they’ve been showing all week, because the commodity is seen as overpriced compared to CBOT soybeans and other oilseeds, analysts said.
Traders were “dumping” out of positions, and crushers were liquidating crush positions, which also fuelled some of the price softness in canola, according to traders.
Beneficial weather for the planting and development of the soybean crop in Brazil and Argentina also weighed on canola values.
General firmness in the value of the Canadian dollar, as it remained above parity with its US counterpart, also added to the bearish price sentiment.
However, slow farmer selling, as they’re waiting for stronger prices, helped to limit the declines, according to brokers.
As of 10:37 CST, about 1,640 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:37 CST:
dn 2.70 Mar 574.10 dn 2.70 May 573.90 dn 1.40 Milling Wheat Dec 297.30 unch Mar 306.80 unch Durum Dec 312.00 unch Mar 318.60 unch Barley Dec 250.00 unch Mar 253.00 unch
Futures Prices as of June 19, 2013
Prices are in Canadian dollars per metric ton