By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 12, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed at 10:52 CST Tuesday, with intermonth spreading accounting for the bulk of the activity as speculators were rolling out of the front month.
In the outright trade canola bounced around both sides of unchanged, but the most active contracts were mostly lower at midsession. Losses in the CBOT soy complex accounted for some of the spillover selling pressure, according to participants.
Larger than expected canola production in Australia and the looming South American soybean crops also weighed on values, said traders.
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However, ongoing concerns over Canada’s tightening canola supplies did provide some underlying support. A slowdown in farmer selling was also helping limit the losses.
“The farmers have parked their trucks and backed away,” said a broker noting that producers had made good sales when prices rose earlier in the month and were now content to wait for a return to those highs before selling any more.
At 10:52 CST, about 9,300 canola contracts had changed hands, with the March/May spread accounting for the majority of the activity.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CST:
