By Dwayne Klassen, Commodity News Service Canada
February 6, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:43 CST Wednesday morning with the taking of profits and the downturn in CBOT soybean and soyoil values behind the declines, market watchers said.
Some early selling in canola reflected sentiment that values were due for a downward correction after recent strength, brokers said. The push lower in CBOT soybeans and soyoil encouraged the price declines in canola and when the losses in those two comodities were expanded, the weakness in canola also was extended.
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General firmness in the Canadian dollar was viewed as an undermining price influence with steady elevator company hedge selling, which was being encouraged by fairly aggressive farmer deliveries of canola into the cash pipeline, adding to the bearish sentiment, traders said.
The downward price slide in canola, however, was being slowed by the tight stocks situation in western Canada. Steady domestic processor demand and the pricing of old business by export outlets also kept a firm floor under the commodity, brokers said.
Spreading remained a key feature of the activity in canola and accounted for a significant portion of the volume total.
As of 10:43 CST, about 18,019 canola contracts had traded. Of those contracts, spreading accounted for 15,798 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:43 CST:
