By Dwayne Klassen, Commodity News Service Canada
June 21, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly higher price levels in early Friday morning activity. Strength was associated with sentiment that values were due for a correction to the upside, market watchers said.
Some of the upward price action also came as participants bought back previously sold positions
Positioning ahead of the weekend was a feature of the activity with light liquidation orders from speculative and commodity fund accounts putting some of the early downward pressure on values.
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Early losses in CBOT soybeans and declines overnight in Malaysian palm oil helped to encourage some of the early price weakness in canola, traders said.
Farmer deliveries of canola to the country elevator system remain steady, which further undermined futures, brokers said.
Mostly good weather conditions on the canadina prairies for crop development also added to some of the bearish sentiment in the commodity. However, concerns about extremely wet conditions in isolated areas did temper the price drop.
Underlying support in canola also came from scale down commercial demand, believed to be covering domestic crusher needs as well as some routine export business.
As of 08:47 CDT, about 3,259 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 08:47 CDT:
