By Phil Franz-Warkentin, Commodity News Service Canada
March 12, 2013
Winnipeg – ICE Futures Canada canola contracts closed at their lowest levels in a week on Tuesday, as speculative profit-taking and spillover from the losses in CBOT soyoil weighed on values.
Activity in the canola market was on the quiet side, according to participants, with end user demand and farmer deliveries said to have reached a bit of a balance for the time being.
Concerns over tightening supplies in western Canada and the need to ration demand going forward did help underpin the market, especially as exporters and domestic crushers continue to offer good basis opportunities to draw in supplies, said a trader.
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However, expectations for large South American soybean crops and the likelihood of increased canola production in 2013 countered those supply concerns to keep the bias to the downside overall.
Technical signals were also said to be pointing lower for canola, accounting for some of the weakness in the futures.
About 8,410 canola contracts were traded on Tuesday, which compares with Monday when 7,215 contracts changed hands. Spreading accounted for about 3,520 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
