|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 22, 2012|
|Winnipeg – ICE Futures Canada canola contracts were slightly lower in most months at Thursday’s close. Trade was thin and choppy, with many participants waiting on the sidelines while US markets were closed for Thanksgiving.
With no direction from the CBOT soybean market, canola values were range-bound during the session with intermonth spreading accounting for nearly all of the trade volumes. The outright trade that did occur was seen as follow-through and position-evening on what happened earlier in the week, according to participants.
Ideas that canola is overpriced compared to other oilseeds did remain a bearish influence overhanging the futures. Speculators and domestic crushers were both said to be on the sell side.
Beneficial weather for the planting and development of the soybean crop in Brazil and Argentina also weighed on canola values, according to traders.
However, slow farmer selling in the cash market, as producers continue to hold out for higher prices, helped to limit the declines. Concerns over the tight supply situation in western Canada, the resulting need to ration demand going forward, also provided some underlying support, said traders.
About 5,612 canola contracts were traded on Thursday, which compares with Wednesday when 12,980 contracts changed hands. Spreading was behind most of the activity, accounting for about 5,388 of the contracts traded. Milling wheat, and barley futures were untraded and unchanged. Durum held steady in two-sided commercial activity.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Jan 578.40 dn 0.80
Mar 576.00 dn 0.80
May 575.00 dn 0.30
Milling Wheat Dec 297.30 unch
Mar 306.80 unch
Durum Dec 312.00 unch
Mar 318.60 unch
Barley Dec 250.00 unch
Mar 253.00 unch