By Dwayne Klassen, Commodity News Service Canada
March 7, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at slightly weaker price levels at 10:56 CST Thursday morning with some of the weakness associated with the taking of profits after Wednesday’s strong gains, market watchers said.
Sentiment that canola is overpriced and in need of a correction to the downside further influenced some of the downward price action.
Some of the weakness was also tied to participants evening up positions ahead of new supply/demand reports that will be released by the USDA on Friday. A small upturn in the value of the Canadian dollar early Thursday further capped some of the buying that had recently surfaced in canola, brokers said.
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Steady elevator company hedge selling, tied to a pick up in farmer deliveries of canola into the cash pipeline, contributed to the bearish sentiment in the commodity, brokers said.
The losses in CBOT soybean futures also were viewed as an undermining price influence on canola.
As of 10:56 CST, about 4,568 canola contracts had traded. Of those contracts, spreading accounted for 2,146 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:56 CST:
