By Dwayne Klassen, Commodity News Service Canada
Winnipeg – May 21/13 – Canola futures on the ICE Canada trading
platform finished Tuesday’s session mainly lower with only the nearby
July contract managing to end with advances. Tight old crop canola
stocks and the lack of willing sellers resulted in the nearby July
future moving to the upside, market watchers said.
The lack of selling against the July future came in part as
farmers concentrate on spring fieldwork as well as seeding operations
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The buying back of previously sold positions helped to generate
some of the price strength seen in the July future.
The weakness in the remaining canola futures was associated in
part to the losses seen in CBOT soybean futures and to an unexpectedly strong planting pace across most of western Canada over the past week or so, brokers said.
Some of the downward price action in the deferred values also
came as domestic crusher and exporter demand for those contracts has
declined significantly, traders said.
The ample supply of South American soybeans currently available
on the global market was also viewed as an undermining price influence on canola.
Spreading of the July/Nov contracts was a key feature of the
activity in canola Tuesday and contributed significantly to the volum total.
There were an estimated 14,286 canola contracts traded Tuesday,
up from the 17,932 contracts that changed hands during the previous session. Of the contracts traded, 5,594 were spread related.
No milling wheat, durum or barley contracts were traded during
the session.
Prices are in Canadian dollars per metric ton.
