By Phil Franz-Warkentin, Commodity News Service Canada
November 7, 2013
Winnipeg – ICE Futures Canada canola contracts traded to both sides of unchanged on Thursday, finishing with small losses as spillover buying interest from the gains in CBOT soybeans was countered by the losses in soyoil.
The losses in CBOT soyoil, together with bearish technical signals, accounted for much of the weakness in canola with speculators on the sell side for most of the session.
However, while the declines in soyoil may have provided the catalyst for the move down in canola, CBOT soybeans were higher on Thursday on the back of solid export demand. The conflicting influences led to a bit of a “tug-o-war” in canola, according to a broker.
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A lack of significant farmer selling remained supportive for canola, with producers still content to wait on the sidelines for the time being, said participants.
The USDA will release its first supply/demand report in two months on Friday, and positioning ahead of the report was a feature.
About 23,536 canola contracts were traded on Thursday, which compares with Wednesday when 22,005 contracts changed hands.
Milling wheat, durum and barley futures were untraded, although wheat was revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.
