By Phil Franz-Warkentin, Commodity News Service Canada
April 30, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Tuesday, as speculative profit-taking and spillover from the declines in the CBOT soy complex weighed on values.
Overbought price sentiment, the firm Canadian dollar, and a softer tone in the CBOT soy complex all contributed to the weakness in canola, according to participants.
Speculators were the noted sellers, as prices tested nearby support and some sell-stops were hit.
However, solid end user demand on the other side did help limit the declines. Basis levels remain very strong in western Canada, especially from domestic crushers, said a trader.
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Tightening old crop supplies and concerns over planting delays for the new crop provided support, limiting the losses as well. However, a trader cautioned that it is also still much too early to write off the 2013 crop, as producers will make short work of seeding once they are given the opportunity.
About 15,404 canola contracts were traded on Tuesday, which compares with Monday when 21,899 contracts changed hands. Inter-month spreading was a feature, accounting for about 8,738 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
