By Phil Franz-Warkentin, Commodity News Service Canada
March 12, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small declines at 10:50 CDT Tuesday in quiet trade as losses in the CBOT soy complex spilled over to put some pressure on the market.
“We’re just waiting for something to happen,” said a Winnipeg-based trader on the small volume activity. He noted that end-user demand and farmer deliveries had reached an equilibrium for the time being.
Concerns over tightening supplies and the need to ration demand going forward did help underpin the market, but expectations for large South American soybean crops and the likelihood of increased canola production in 2013 countered those supply concerns to keep values narrowly range-bound, said participants.
Technical signals were said to be pointing lower for canola, accounting for some of the weakness in the futures.
At 10:50 CDT, about 3,300 canola contracts had changed hands, with intermonth spreading only a small feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
