By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 3, 2013
Winnipeg – ICE Futures Canada canola contracts closed mostly lower on Thursday, as a softer tone in the CBOT soy complex spilled over to weigh on the Canadian market.
Only the nearby January contract moved higher, as traders exiting the front month caused the January/March spread to widen.
The losses in soybeans were tied to bearish technical signals, Chinese cancellations, and the relatively favourable crop conditions in South America, according to participants.
The charts for canola were also said to be pointing lower, with prices backing away from the high end of their recent trading range during the session.
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Light farmer selling was also noted, although producers generally remain content to wait on the sidelines for the time being, said traders.
Scale-down end user buying did help temper the declines in canola, according to participants. Ongoing concerns over tightening supplies in western Canada and a softer tone in the Canadian dollar were also supportive.
About 12,991 canola contracts were traded on Thursday, which compares with Wednesday when 11,762 contracts changed hands. Spreading accounted for about 8,122 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
