By Dwayne Klassen, Commodity News Service Canada
June 14, 2013
Winnipeg –
Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at 10:15 CDT Friday morning. The liquidation of long positions by commodity fund and speculative accounts helped to weigh on values, market watchers said.
The bearish price sentiment was also tied to the generally weaker tone seen in CBOT soybean values.
Farmer deliveries of canola into the cash market were on the slower side, but enough canola was being moved to generate some light selling in the futures market, brokers said.
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Some of the declines in canola were also encouraged by sentiment that the canola fields in western Canada were generally developing under good weather conditions. However, that selling was offset by new reports that wet and cold conditions, particularly in Alberta, were starting to impact crop growth in select areas.
The evening up of positions ahead of the weekend was a feature of the activity. Much of the trade in the nearby July future was conducted between commercials.
The losses in canola were slowed by scale down commercial buying, believed to be related to domestic crushers and exporters, traders said.
A downswing in the value of the Canadian dollar Friday also helped to restrict the price declines.
As of 10:15 CDT, about 7,771 canola contracts had traded. Of the contracts traded, 5,612 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:15 CDT:
