By Dwayne Klassen, Commodity News Service Canada
June 3, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed price range at at 10:33 CDT Monday morning with some of the downward price action associated with the upswing in the value of the Canadian dollar, market watchers said.
“Canola futures are really struggling to find a direction,” a broker said, commenting on the lack of solid price direction one way or the other. Spreading was a feature of the activity and accounted for a significant portion of the volume total. Some of that price action was believed to be the rolling out of positions out of the nearby January future and into other contracts.
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Steady elevator company hedge selling, tied to an increase in canola marketings by farmers, helped to weigh on the nearby months, brokers said.
Sentiment that the seeding of the canola crop in western Canada was nearing completion also influenced some minor selling. Talk that early emergence of canola fields was excellent, also sparked some selling interest, traders said.
The declines in CBOT soyoil futures were an undermining influence, but the gains seen in CBOT soybeans helped to slow the downward price action.
The pricing of routine export business and some domestic crusher needs helped to generate some underlying support for new-crop canola contracts, brokers said.
As of 10:33 CDT, about 7,148 canola contracts had traded. Of the contracts traded, 3,992 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:33 CDT:
