By Phil Franz-Warkentin, Commodity News Service Canada
March 11, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were narrowly mixed at 10:45 CDT Monday, lacking any clear direction in thin two-sided activity.
Concerns over tightening supplies and the need to ration demand going forward did help underpin the front months, as did the firmer tone in old crop CBOT soybeans, said participants.
However, expectations for large South American soybean crops and the likelihood of increased canola production in 2013 did put some downward pressure on the more deferred contracts.
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Activity overall was described as “thin and quiet,” by a broker. He said exporters made some fresh purchases last week, but have now moved to the sidelines with their needs covered for the time being. Speculators are also already holding large long positions, and were showing a reluctance to add to those positions.
On the other side, farmer selling has also slowed down, as producers wait to see which direction the market goes.
At 10:45 CDT, about 3,000 canola contracts had changed hands, with intermonth spreading only a small feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
