| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 6, 2012 |
| Winnipeg – ICE Futures Canada canola contracts closed lower on Thursday, as the market saw a correction amid ideas the rally on Wednesday was overdone. Profit-taking following Wednesday’s rally accounted for some early weakness in canola. However, activity was choppy and prices did manage to drift back towards unchanged at one point during the session before dropping again right at the close. Read AlsoCanadian Financial Close: C$ firm FridayGlacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on… Gains in CBOT soybeans did provide some underlying support, although traders said canola was looking overpriced compared to soybeans. Uncertainty over South American soybean production helped underpin the canola market as well. The overall trend is pointing higher from a chart perspective, making any losses a good buying opportunity for the fund traders who are holding large short positions, according to a broker. This year’s smaller canola crop, and the need to ration demand going forward, kept values supported as well. About 13,117 canola contracts were traded on Thursday, which compares with Wednesday when 21,439 contracts changed hands. Spreading was a feature, accounting for about 8,922 of the contracts traded. Milling wheat futures were down in light commercial trade, as participants exited the December contract. Durum and barley futures were untraded and unchanged. Settlement prices are in Canadian dollars per metric ton.Price Change Canola Jan 599.40 dn 2.80 Mar 597.10 dn 2.90 May 595.50 dn 3.20 Milling Wheat Dec 290.90 dn 5.10 Mar 303.60 dn 0.60 Durum Dec 312.00 unch Mar 316.00 unch Barley Dec 245.00 unch Mar 248.00 unch |
