By Phil Franz-Warkentin, Commodity News Service Canada
June 17, 2013
Winnipeg – ICE Futures Canada canola contracts were steady to lower at Monday’s close after trading to both sides of unchanged in choppy activity.
With seeding operations across western Canada wrapping up and weather forecasts looking good for development, the path of least resistance to start the week was lower in canola, said participants.
Speculators were noted sellers, according to a broker, with declines in CBOT soybeans adding to the softer tone in the Canadian market.
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However, the speculative selling ran out of steam and values were well off their lows by the close. Commercials were noted buyers, with gains in CBOT soyoil providing some spillover support for canola.
A lack of farmer selling, expectations for very tight ending stocks, and the softer tone in the Canadian dollar were also supportive for canola, according to traders.
About 13,197 canola contracts were traded on Monday, which compares with Friday when 14,746 contracts changed hands. The July/November spread was a feature as participants continued to roll their positions out of the front month.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
