By Phil Franz-Warkentin, Commodity News Service Canada
April 30, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:55 CDT Tuesday, seeing a profit-taking correction following Monday’s gains.
Overbought price sentiment, the firm Canadian dollar, and a softer tone in CBOT soyoil all contributed to the selling pressure in canola, according to participants.
Speculators were the noted sellers, with solid end user demand on the other side helping limit the declines. A trader noted that basis levels remain very strong in western Canada, especially from domestic crushers.
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Tightening old crop supplies and concerns over planting delays for the new crop did provide some support, limiting the losses. However, a trader noted that it was still too early to write off the 2013 crop, as producers will make short work of seeding the crop given the opportunity.
At 10:55 CDT, about 7,000 canola contracts had changed hands. Intermonth spreading accounted for about half of the activity, with the narrowing of the July/November spread a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:55 CDT:
