By Dwayne Klassen, Commodity News Service Canada
May 23, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Thursday’s session on a weaker footing with late day liquidation from speculative and commodity fund accounts encouraging the declines, market watchers said.
The upswing in the value of the Canadian dollar was also an undermining price influence as was sentiment that the gains seen on Wednesday were overdone and that canola futures needed to correct to the downside, traders said.
Favourable weather for the planting of the various grain and oilseed crops in western Canada over the next few days also added to the bearish sentiment in the commodity.
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Some weakness in canola was also associated with the ample supply of soybeans from South America that is currently available on the global market, brokers said.
Some early advances in canola has been spurred on by the concerns regarding the tight old crop supply situation. The absence of significant farmer deliveries into the cash market had also underpinned values. Traders indicated farmers were concentrating on spring planting rather than marketing.
The strength displayed by CBOT soybean and soyoil futures had also provided canola with some price strength, brokers said.
There were an estimated 15,289 canola contracts traded Thursday, down from the 18,520 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
