By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 31, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were slightly weaker at 10:46 CST Thursday, as losses in the CBOT soy complex spilled over to weigh on values.
Canola futures rallied to their highest levels since September on Wednesday, and were due for a profit-taking correction from a technical standpoint, according to participants.
Increased farmer selling, as producers take advantage of the higher prices, was also said to be putting some pressure on values.
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Some of the weakness in canola was also tied to softening crush margins. The Canadian dollar moved back above parity with its US counterpart and the product values posted declines, making canola less attractive to domestic crushers.
However, canola did lag soybeans to the downside. Concerns over tightening supplies in western Canada did remain supportive overall. Technical support was also holding to the downside, as Wednesday’s break above former resistance was seen as positive from a chart perspective.
At 10:46 CST, about 14,000 canola contracts had changed hands, with intermonth spreading a feature as participants were squaring positions on the final trading day of the month.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:46 CST:
