By Phil Franz-Warkentin, Commodity News Service Canada
May 14, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mixed in quiet activity at 10:53 CDT Tuesday, with a softer tone in the nearby July contract and gains in the more deferred positions.
“We’re just treading water today,” said a Winnipeg-based broker on the thin, choppy trade.
Overbought price sentiment and spillover from the softer tone in the CBOT soy complex put some pressure on canola values, according to traders. The large South American soybean crop also continues to weigh on values.
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From a technical standpoint, the July contract was said to be running into resistance to the upside, with profit-taking and farmer selling coming forward as values neared the top end of a four-month trading range.
For the new crop months, uncertainty over planting weather providing some support, said a broker. While seeding progress is starting to pick up, forecasts are calling for rainfall across much of the Canadian Prairies later in the week.
A weaker tone in the Canadian dollar was also supportive for canola values, according to participants.
At 10:53 CDT, about 3,800 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 10:53 CDT:
