By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 11, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Monday, dropping in sympathy with the CBOT soy complex as speculative long-liquidation and follow-through selling on Friday’s losses weighed on values.
A slowdown in buying interest from exporters and domestic crushers, as the recent strength in the market is doing its job of rationing demand, added to the weaker tone, according to a broker. Steady farmer selling put further pressure on values.
However, the losses in canola were tempered by the weaker tone in the Canadian dollar, said participants. The overall uptrend also still remains intact from a chart perspective, providing some support as well. Intermonth spreading was the feature in canola, with the March/May spread narrowing in as participants were busy exiting the front month.
About 28,230 canola contracts were traded on Monday, which compares with Friday when 36,870 contracts changed hands. Spreading accounted for about 23,948 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
