By Dwayne Klassen, Commodity News Service Canada
June 6, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Thursday’s session on the defensive with some of the downward price action associated with the warm and dry weather outlook for the Canadian prairies, market watchers said.
The favourable weather was seen allowing farmers to finish up any left over seeding operations as well as allow for the excellent development of recently planted fields, brokers said.
Activity in canola was confined to the first four contracts where spreading was an active feature.
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Losses overnight in European rapeseed futures helped to spur some of the price weakness seen in canola as did the generally weaker tone experienced by CBOT soybean and soyoil values.
A small drop off in commercial demand helped to weigh on canola as did steady speculative chart-based liquidation orders, traders said.
General firmness in the Canadian dollar was also viewed as an undermining price influence.
The losses in canola were restricted by a drop off in farmer deliveries of canola into the cash pipeline. The buying back of previously sold positions at the lows of the day also helped to temper the price declines, brokers said.
There were an estimated 13,752 canola contracts traded Thursday, down from the 18,166 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
