| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 6, 2012 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:47 CST Thursday, as ideas that Wednesday’s rally was overdone put some pressure on values. Canola hit its highest levels in over a month on Wednesday and overbought price sentiment amid a lack of fresh bullish news caused investors to book some profits on Thursday. “We’re seeing a healthy correction after the recovery we had yesterday,” said a broker. Read AlsoCanadian Financial Close: C$ firm FridayGlacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on… However, gains in CBOT soybeans did provide some underlying support. Uncertainty over the size of the South American soybean crop, as excess moisture continues to cause planting delays in parts of Argentina, helped underpin the canola market as well, according to participants. Technical support was also holding in the January contract, with the futures not showing much downside below the psychological C$600 per tonne level. A broker said the overall trend was pointing higher from a chart perspective, making any losses a good buying opportunity for the fund traders who are holding large short positions. At 10:47 CST, about 7,800 canola contracts had changed hands with intermonth spreading a feature. Milling wheat, durum and barley futures were untraded and unchanged. Prices in Canadian dollars per metric ton at 10:47 CST:Price Change Canola Jan 599.20 dn 3.00 Mar 597.50 dn 2.50 May 597.00 dn 1.70 Milling Wheat Dec 296.00 unch Mar 304.00 unch Durum Dec 312.00 unch Mar 316.00 unch Barley Dec 245.00 unch Mar 248.00 unch |
