By Dwayne Klassen, Commodity News Service Canada
March 5, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Tuesday’s session on a mainly weaker footing with only the nearby May contract managing to settled with gains.
Some of the early support that generated some of the strength for canola was associated with the advances seen in CBOT soybean and soyoil futures, market watchers said. However, the late downturn in CBOT soyoil values sparked the selling that erased some of the price advances in canola.
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Some early support in canola had also come from steady demand from the domestic and export sectors as well as from concerns that old crop canola supplies were tightening further, traders said.
Chart-based buying by speculative and commodity fund accounts had also generated some support for canola. Logistical issues that were slowing the movement of soybeans from Brazilian ports, also provided some early support to the oilseed ssector.
The upswing in canola was capped by the taking of profits as well as by the late upturn in the value of the Canadian dollar.
Declines in canola were also influenced by a pick up in farmer deliveries into the cash pipeline. A lot of that movement was initiated by the strong cash bids being offered by elevator companies in certain locations in western Canada, brokers said.
Spreading was a minor feature of the activity in canola but still helped to bolster the volume total.
There were an estimated 16,874 canola contracts traded Tuesday, up from the 11,899 contracts that changed hands during the previous session. Of the contracts that were traded, 8,720 consisted of spreads.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
