By Dwayne Klassen, Commodity News Service Canada
Winnipeg – May 27/13 – CNS – Canola contracts on the ICE
Futures Canada platform were trading at mainly higher levels at
10:45 CDT Monday morning with only the nearby July future
experiencing any kind of price decline. Activity in canola was
described as light and featureless with the lack of clear
direction associated with the closure of the US markets for
Memorial Day.
The unwinding of spreads provided much of the volume total
so far, with commodity funds said to be unloading July contracts
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price action had put some downward pressure on the July future
earlier in the session.
Some support in the deferred values was linked to light
commercial demand, said to be pricing routine export business as
well as some light domestic crusher needs, traders said.
Farmer deliveries of canola into the cash pipeline were also
on the light side, which offered some minor support, brokers
said.
Some of the support in canola was also tied to ideas that
the CBOT soybean complex would open on a firmer footing Tuesday
reacting to heavy rains in key growing areas of the US, which may
have delayed seeding operations.
Talk of good seeding progress across much of western Canada
despite bouts of precipitation, helped to temper some of the
buying in the deferred months, brokers said. However, talk of
seeded regions in need of rain because of dryness did limit that
selling interest.
As of 10:45 CDT, about 1,679 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and
untraded.
Prices in Canadian dollars per metric ton at 10:45 CDT:
