|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 20, 2012|
|Winnipeg – ICE Canada canola futures were weaker Tuesday morning, as the market failed to see any follow-through buying interest on Monday’s firmer close.
Losses in CBOT soybeans, which were brought on by improving South American crop prospects, provided the catalyst for the downturn in canola, according to traders.
The overall technical trend also remains pointed lower in canola, according to analysts. As a result, any attempts at taking prices higher were seen as good selling opportunities.
Tightening Canadian canola supplies and the need to ration demand going forward did provide some underlying support, said traders.
Participants cautioned that activity in the grain and oilseed markets could turn choppy, as US traders move to the sidelines and square positions ahead of that country’s Thanksgiving holiday.
About 1,600 canola contracts had traded as of 8:40 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:40 CST:Price Change
Canola Jan 577.60 dn 2.40
Mar 574.00 dn 3.40
May 573.00 dn 3.20
Milling Wheat Dec 300.20 unch
Mar 309.70 unch
Durum Dec 311.90 unch
Mar 318.50 unch
Barley Dec 250.00 unch
Mar 253.00 unch