By Dwayne Klassen, Commodity News Service Canada
March 7, 2013
WINNIPEG – Canola futures on the ICE Canada trading platform finished Thursday’s session on the defensive after experiencing some price advances during the day. Much of the price weakness was linked to the taking of profits after Wednesday’s strong gains and to the liquidation of positions ahead of the USDA supply/demand reports scheduled for release on Friday, market watchers said.
A small upturn in the value of the Canadian dollar also was viewed as an undermining price influence. Additional bearish sentiment in canola was fueled by elevator company hedge selling, spurred on by steady farmer deli8veries of canola into the cash pipeline, traders said.
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Declines in canola were additionally tied to sentiment that values were due for a downward correction after recent advances.
Some support in canola had come from a small pick up in exporter and domestic crusher demand. Concerns about tight old crop canola supplies had also encouraged some price strength, brokers said.
The buying back of previously sold positions was also evident earlier in the day and helped to generate some minor support.
The gains in CBOT soyoil futures had also provided support to canola with the late upturn in CBOT soybean futures also helping canola to pare some of the declines, brokers said.
Spreading was a feature of the activity in canola and helped to bolster the volume total.
There were an estimated 13,779 canola contracts traded Thursday, down from the 17,137 contracts that changed hands during the previous session. Of the contracts that were traded, 6,496 consisted of spreads.
No milling wheat, durum or barley contracts were traded during the session although values were adjusted for milling wheat and barley by ICE Canada at the close.
Prices are in Canadian dollars per metric ton.
