By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 27/12 – CNS – Canola contracts on the
ICE Futures Canada platform were trading at lower price levels at
10:32 CST Thursday morning with the bulk of the volume consisting
of spreads, market watchers said.
Much of the activity consisted of market participants
rolling positions out of the January future and into other months
ahead of January contract becoming a cash delivery month.
The weakness in canola reflected a bit of catch up to the
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when the ICE Canada platform was closed for the Boxing Day
holiday.
Declines overnight in European rapeseed futures and the
liquidation of positions ahead of year-end also added to the
bearish price sentiment in canola, traders said.
Steady farmer deliveries of canola into the cash pipeline,
as reflected by weekly Canadian Grain Commission statistics also
was viewed as an undermining price influence, brokers said.
Declining profit margins for domestic processors along with
the favourable weather for the development of the record large
soybean crops in South America also contributed to the price
declines experienced by canola.
Underlying support in canola came from scale down pricing of
old export business by commercials. Some strength in CBOT soybean
futures Thursday also helped to slow the price drop in canola,
traders said.
As of 10:32 CST, about 18,465 canola contracts had traded.
Of those contracts, spreading accounted for 17,862 of the trades.
Milling wheat, durum and barley contracts were unchanged and
untraded.
Prices in Canadian dollars per metric ton at 10:32 CST:
