By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 8, 2013
Winnipeg – ICE Canada canola futures were weaker Friday morning, seeing a profit-taking correction after running into overhead resistance.
The March contract broke above the psychological C$650 per tonne level in overnight activity, but failed to hold above that chart point as speculators started booking profits.
Increased farmer selling added to the softer tone in the futures, as producers take advantage of the strong cash bids currently available, according to participants.
The USDA releases updated supply/demand tables later in the day, and caution ahead of the data tempered the activity in the canola market. CBOT soybean futures were posting small gains in early trade.
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Ongoing concerns over Canada’s tightening canola supplies, and the need ration demand, kept canola well supported, according to traders. The overall technical trend also remains pointed higher, with any declines seen as good buying opportunities.
About 5,200 canola contracts had traded as of 8:48 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:48 CST:
