Dwayne Klassen, Commodity News Service Canada
June 14, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Friday’s session mainly lower with the liquidation of long positions by commodity fund and speculative accounts behind the downward price slide, market watchers said. Some of that selling was inspired by chart signals.
Some of the selling also consisted of position evening ahead of the weekend.
Spreading was again a key feature of the activity in canola with most of that activity being conducted between commercials. The spreading helped to support the nearby July future and put some downward pressure on the deferred months.
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Steady deliveries of canola into the cash pipeline by farmers helped to weigh on values. The generally weaker tone in new crop CBOT soybeans also encouraged some of the downward price action seen in canola during the day, traders said.
The losses in canola were restricted by steady commercial buying interest, albeit on a scale down basis. Some of that buying was believed to be covering routine export business as well as some domestic processor requirements, brokers said.
Gains in CBOT soyoil also helped to keep canola off its lows for the day.
Some minor support in canola also came from the declines seen in the Canadian dollar.
Some underlying support in canola also came from reports that canola crops in select areas of Alberta were not developing as well as they could given cool and wet weather conditions, traders said.
There were an estimated 14,746 canola contracts traded Friday, down from the 20,947 contracts that changed hands during the previous session. Of the contracts traded, 8,138 were spread related.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
