| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 20, 2012 |
| Winnipeg – ICE Futures Canada canola contracts were mostly lower once again on Thursday, seeing a continuation of the speculative selling that has weighed on prices the entire week. Losses in the CBOT soy complex accounted for much of the selling pressure in canola, according to traders. News that China had canceled more US soybean purchases, along with improving South American crop prospects, accounted for much of the weakness in soybeans that spilled into canola. Read AlsoCanadian Financial Close: Crude oil drops, new high for TSXGlacier FarmMedia | MarketsFarm – The Canadian dollar eased off on Monday, but remained above the 73 United States cent mark…. The fundamentals for canola are also looking much more supportive than the other oilseed markets, as evidenced by the very strong basis levels in Western Canada, said an analyst. The tight supply situation limited the downside potential in canola. About 30,098 canola contracts were traded on Thursday, which compares with Wednesday when 26,280 contracts changed hands. Spreading was a feature, accounting for the bulk of the volumes. In addition to participants rolling out of the front month, some of the spread activity was also tied to the narrowing of the old/new crop spread. Milling wheat and durum futures were untraded and unchanged. Barley futures were also untraded, but revised slightly lower after the close. |
