By Dwayne Klassen, Commodity News Service Canada
April 9, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed range at
10:39 CDT Tuesday with light liquidation associated with the declines in CBOT soybean values behind some of the downward price action, market watchers said. The absence of farmer selling combined with light commercial demand helped to generate some underlying support.
Activity in canola was described as extremely volatile with few participants willing to set large positions ahead of the USDA supply/demand update on Wednesday.
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The upswing in the value of the Canadian dollar was viewed as an undermining price influence with the advancing South American soybean harvest also adding to the bearish price sentiment in the oilseed sector. Overhead technical resistance was also keeping the upside in canola corralled.
Some of the commercial interest was said to be covering domestic crusher and exporter needs, traders said.
Worries about delayed seeding this spring due to adverse weather on the Canadian prairies also provided some minor support for values, brokers said.
As of 10:39 CDT, about 3,700 canola contracts had traded. Of the contracts traded, 2,876 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:39 CDT:
