By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 1, 2013
Winnipeg – ICE Futures Canada canola contracts closed with small gains on Friday, finishing well off their highs for the session as the early buying interest ran out of steam and profit-taking came forward ahead of the weekend.
Bullish technical signals were behind much of the early strength in canola, with some speculative buy-stops hit as prices climbed higher, according to participants.
In addition to the bullish technical signals, end-user demand was also supportive. Exporters and domestic crushers were both said to be on the buy side, as they work to secure coverage of the ever tightening western Canadian supplies.
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Gains in CBOT soybeans provided some spillover support as well. However, soybeans settled well off their highs, which tempered the upside potential in canola. Scale-up farmer selling and late day profit-taking kept a lid on the canola market, according to traders.
About 29,146 canola contracts were traded on Friday, which compares with Thursday when 27,071 contracts changed hands. Spreading accounted for about 24,008 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
