By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 13, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed at 10:45 CST Wednesday, with a weaker tone in the front months and modest gains in the more deferred positions. Trade was choppy, with the market bouncing around in a wide range.
Volatile activity in the US soy market accounted for some of the choppiness in canola, according to traders. Expectations for large South American soybean crops were keeping the US futures pointed lower for the most part, but soyoil was higher.
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The nearby March canola contract was as much as C$7.00 per tonne softer at one point during the session, as the speculative selling that’s pressured prices all week continued to weigh on values. However, support was uncovered at the lows and the front month was within a dollar of Tuesday’s close at 10:45 CST.
The losses earlier this week helped crush margins improve, which was underpinning the canola market as well, according to a trader. A slowdown in farmer selling, after high cash prices earlier in the month encouraged some deliveries, was also somewhat supportive.
At 10:45 CST, about 10,400 canola contracts had changed hands, with the March/May spread accounting for the majority of the activity as participants continue to roll their positions out of the nearby contract.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CST:
