ICE Canola Backs Away With Profit-Taking

By Phil Franz-Warkentin, Commodity News Service Canada

Feb. 6, 2013

Winnipeg – ICE Canada canola futures were weaker Wednesday morning, taking back most of Tuesday’s advances as losses in the CBOT soy complex spilled over to weigh on values.

Speculative profit-taking was a feature in overnight activity, according to participants. Increased farmer selling was also said to be behind some of the weakness, as producers continue to take advantage of the good cash prices currently available to make some sales.

Ongoing concerns over Canada’s tight canola supplies did limit the losses in the front months, as stocks data released by Statistics Canada on Tuesday highlighted the need for demand rationing going forward, said analysts.

The charts also remain pointed higher overall, despite any bouts of profit-taking, making any losses good buying opportunities from a technical standpoint.

About 7,500 canola contracts had traded as of 8:40 CST, with inter-month spreading a feature of the activity.

Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.

Prices in Canadian dollars per metric ton at 8:40 CST:

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