By Phil Franz-Warkentin, Commodity News Service Canada
April 1, 2013
Winnipeg – ICE Futures Canada canola contracts were mostly lower on Monday, after trading to both sides of unchanged in choppy activity during the session.
Follow-through selling from Thursday’s declines accounted for much of the weakness in the futures, with the sharp losses in CBOT corn for the second session in a row behind some of the speculative selling in the Canadian futures as well, according to participants.
Losses in CBOT soybeans were also bearish, although the relatively firmer tone in new crop soybeans and soyoil did provide some underlying support. The lightly traded new crop canola contracts also managed to finish the day holding onto small gains.
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Farmers were said to be on the sidelines after making good sales recently, and that lack of hedge pressure helped limit the downside potential in canola, according to traders. Solid export and domestic crusher demand provided further support.
Concerns over the weather conditions across western Canada were another supportive influence, according to a broker, as the slow spring melt may delay seeding operations this year.
About 11,190 canola contracts were traded on Monday, which compares with Thursday when 23,824 contracts changed hands. Markets were closed Friday for Good Friday. Spreading accounted for 6,580 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
