By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 15, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Tuesday, seeing a correction from Monday’s gains.
Losses in CBOT soybeans contributed to the declines in canola, although the firmness in soyoil helped offset the influence from the US markets, said participants.
Canola was also said to be looking overpriced compared to most other oilseeds, which accounted for some of the selling pressure on Tuesday.
Technical resistance was also holding to the upside and the failure of the March contract to move above the C$600 per tonne level on Wednesday was seen as bearish from a chart perspective. Monday’s move to the upper edge of the recent trading range also encouraged some additional farmer selling.
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Tightening canola supplies in western Canada and the continued demand from end users helped underpin canola values, as supplies will need to be rationed going forward, said traders.
About 11,093 canola contracts were traded on Tuesday, which compares with Monday when 10,218 contracts changed hands. Spreading accounted for about 8,362 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
