By Dwayne Klassen, Commodity News Service Canada
May 6, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished mainly lower Monday with only the nearby months experiencing any sort of upward price push. Much of the selling that surfaced in new-crop canola reflected the sell-off experienced in CBOT soybean and soyoil values, market watchers said.
The losses in the nearby months were tempered by the tight old crop supply situation as well as by the steady usage of the commodity by domestic crushers and export outlets, brokers said. The rolling of spreads helped to underpin the nearby May future while weighing on the deferred months.
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Some of the weakness in the new crop months also reflected the improved weather outlooks for the US Midwest and indications that planting of the US soybean crop will pick up steam.
The return of drier and warmer weather to the Canadian prairies, which was expected to help speed up spring fieldwork, also put some downward pressure on canola futures, traders said.
Some chart-based liquidation orders from speculative and commodity fund accounts further undermined the deferred canola contracts.
General firmness in the Canadian dollar was also seen as a bearish price influence on canola.
There were an estimated 8,165 canola contracts traded Monday, down from the 15,938 contracts that changed hands during the previous session. Of the contracts traded, 1,044 were spread related.
No milling wheat, durum or barley contracts were traded during the session. Also no open interest exists in any of the months.
Prices are in Canadian dollars per metric ton.
