| By Phil Franz-Warkentin, Commodity News Service Canada |
| Nov. 5, 2012 |
Winnipeg – ICE Futures Canada canola contracts closed at their lowest levels in a month on Monday, seeing some follow-through declines from Friday’s sell-off as bearish technical signals weighed on values.Read AlsoCanadian Financial Close: C$ ends steady WednesdayGlacier FarmMedia — The Canadian dollar was steady on the day at Wednesday’s close, recovering from three-week lows relative to… The move below C$600 per tonne in the most active January contract exaggerating the downward move in canola, with some sell-stops hit along the way, according to participants. Relatively favourable South American weather conditions for soybean crops there were bearish for the oilseeds in general as well, said traders. Scale-down end user demand did provide some support for canola. However, buyers were not very aggressive as they appeared content to wait out the correction and see just how much lower prices will go, said a broker. Farmers were also mostly on the sidelines, and the lack of hedge pressure tempered the declines somewhat, said traders. Ongoing concerns over the size of the Canadian canola crop, and the need to ration demand going forward, also helped limit the losses. About 16,309 canola contracts were traded on Monday, which compares with Friday when 13,001 contracts changed hands. Spreading accounted for about 5,282 of the contracts traded. Milling wheat, durum, and barley futures were untraded and unchanged. Settlement prices are in Canadian dollars per metric ton. |
