By Phil Franz-Warkentin, Commodity News Service Canada
April 5, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:50 CDT Friday, as speculative and domestic crusher profit-taking weighed on values.
“The crushers are definitely dumping the crush today,” said a broker accounting for the fact that canola was moving lower while CBOT soyoil was still firm. He said weakness in crush margins, tied to the relative strength of canola over the product values recently, meant the crushers could book profits by selling some of their previously bought positions. Canola gained about US$16 per tonne relative to the soy complex over the past week, and was seeing those gains erode slightly today.
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Spillover from the declines in CBOT soybeans also put some pressure on canola, according to participants.
However, the weaker Canadian dollar did help limit the declines, as disappointing Canadian employment data caused the currency to decline sharply.
Canola was also running into support to the downside, helping limit the losses. Farmers remain on the sidelines for the time being as well, and that lack of selling pressure helped temper the declines as well.
At 10:50 CDT, about 11,500 canola contracts had changed hands, with inter-month spreading accounting for about half of the activity.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
