By Phil Franz-Warkentin, Commodity News Service Canada
March 14, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were narrowly mixed at 10:40 CDT Thursday, although the futures were holding up reasonably well compared to CBOT soybeans as sellers moved to the sidelines and speculative short-covering provided support in the lightly traded market.
After initially dropping in sympathy with the CBOT soy complex, canola uncovered some technical support to the downside, according to a broker. He said the speculative selling backed away and speculators started covering some short positions. A move by CBOT soyoil off of its lows for the day helped encourage the recovery in canola.
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A lack of producer selling provided further support for canola, as “farmers have locked the bins,” according to the broker.
Routine export demand underneath the market was another supportive factor, said participants.
On the other side, the large South American soybean crop continued to overhang the oilseed markets, and the resulting losses in the US futures did put some spillover pressure on canola.
At 10:45 CDT, about 7,500 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 10:45 CDT:
