By Phil Franz-Warkentin, Commodity News Service Canada
March 1, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Friday, as profit-taking ahead of the weekend and spillover from the losses in CBOT soybeans weighed on values.
Malaysian palm oil and European rapeseed futures were also softer on Friday, leaving canola with little choice but to move down as well, according to participants.
Increased farmer selling and ideas that canola was overpriced compared to other oilseeds added to the softer tone, said traders. Speculators booking profits ahead of the weekend were said to be another bearish influence.
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CBOT soyoil did manage to turn higher by the close, which tempered the declines in canola. The ongoing concerns over the tightening supply situation in western Canada did remain supportive overall, limiting the losses. Exporters and domestic crushers also continue to show steady demand, according to participants.
About 11,403 canola contracts were traded on Friday, which compares with Thursday when 13,970 contracts changed hands. Spreading accounted for about 5,396 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
