By Phil Franz-Warkentin, Commodity News Service Canada
May 12, 2014
Winnipeg – ICE Canada canola contracts bounced around both sides of unchanged Monday morning in choppy activity, but the bias had turned lower by 8:53 CDT.
Losses in CBOT soybeans put some spillover pressure on the canola market, according to participants.
Canola ran into chart-based resistance to the upside, which triggered some speculative selling as well. Light farmer hedges, the burdensome old crop supply situation, and a firmer tone in the Canadian dollar contributed to the early softness in canola, said traders.
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On the other side, gains in CBOT soyoil did provide some underlying support, although soyoil was well off its overnight highs. Scale-down end user demand, as canola remains attractively priced compared to other oilseeds, was also supportive.
The need to keep some weather premiums in the futures, with planting delays being reported in parts of the Prairies, kept canola underpinned as well.
About 4,500 canola contracts had traded as of 8:53 CDT, with the July/November spread a feature of the activity.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 8:53 CDT:
