By Dwayne Klassen, Commodity News Service Canada
April 25, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Thursday’s session on the defensive after trading at mainly higher levels for a good portion of the day. Some of the downward price action was associated with the taking of profits and sentiment that values were overbought and in need of a downward correction, market watchers said.
The realigning of spreads accounted for some of the weakness seen in the nearby months and support for the deferreds.
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Canola found good support throughout most of the session from the advances experienced in CBOT soybean and soyoil values. Concerns about tight old crop canola stocks and the steady usage of that commodity by domestic crushers and export outlets also generated some strength, brokers said.
The slow pace of farmer deliveries of canola into the cash pipeline was also viewed as an underpinning price influence. Delays in seeding canola helped to encourage the gains in the deferred months. The possibility of significantly reduced acreage being seeded to canola this spring and concerns about reduced yields also prompted some of the advances seen in the deferred canola contracts, brokers said.
The upside in canola was tempered by light chart-based speculative liquidation. The taking of profits further limited the upside in canola, brokers said.
There were an estimated 21,143 canola contracts traded Thursday, down from the 28,926 contracts that changed hands during the previous session. Of the contracts traded, 14,154 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
