By Phil Franz-Warkentin, Commodity News Service Canada
May 3, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed at 10:52 CDT Friday, as spillover support from the gains in the CBOT soy complex was being countered by speculative selling and a lack of willing buyers.
A report from Statistics Canada confirming the tightening canola supply situation in the country helped underpin the futures as well. StatsCan pegged Canadian canola supplies, as of March 31, 2013, at 3.9 million tonnes. That was well below the previous year’s level and would represent the tightest supplies for that time of year since 2005. However, many market participants were of the opinion that StatsCan had underestimated the size of the 2012 crop.
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Canola lagged soybeans to the upside, with speculative long liquidation said to be weighing on values.
A lack of significant end user demand, as exporters and domestic crushers were not interested in bidding up the market, also put some pressure on prices, according to participants.
Forecasts calling for warmer weather across the Prairies over the next week were also weighing on canola, as the improving weather was seen alleviating some of the concerns over planting delays in western Canada.
At 10:52 CDT, about 10,300 canola contracts had changed hands, with intermonth spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CDT:
