By Dwayne Klassen, Commodity News Service Canada
Winnipeg – May 8/13 – Canola futures on the ICE Canada trading
platform finished narrowly mixed Wednesday with only three months
experiencing any significant price action. The nearby July future
managed to close with an advance while the November and January
futures were steady to lower on the day.
Some early support in canola had stemmed from concerns about
tight old crop supplies and from the reluctance of farmers to deliver
canola into the cash pipeline. Early strength in CBOT soybean and
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Oversold price sentiment had also influenced some minor gains in
canola earlier in the session.
The declines in canola came amid the general strength of the
Canadian dollar and the decline in demand from both the domestic and
export sectors, traders said.
Chart-related liquidation by speculative and commodity fund
accounts further weighed on values. A slight improvement in the
longer-range weather outlooks for the Canadian prairies also
encouraged some minor selling interest, brokers said.
Volumes in canola were on the lighter side with participants
taking to the sidelines to await fresh developments and Friday’s
latest round of supply/demand reports from the USDA.
There were an estimated 10,622 canola contracts traded Wednesday
down from the 16,885 contracts that changed hands during the previous
session. Of the contracts traded, 3,278 were spread related.
No milling wheat, durum or barley contracts were traded
during the session.
Prices are in Canadian dollars per metric ton.
