By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 19, 2012
Winnipeg – Canola contracts on the ICE Futures Canada platform were lower at 10:49 CST Wednesday, retreating from overnight advances as losses in CBOT soybeans spilled over to weigh on values.Recent activity has shifted the technical bias to the downside, and speculative long liquidation ahead of the New Year was behind much of the selling pressure in canola, according to a broker.The relatively favourable prospects for soybean crops in South America were overhanging the oilseed markets as well, said traders.
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However, canola did lag soybeans do the downside as a firmer tone in CBOT soyoil provided some support. Canola has a higher oil content than soybeans, and a broker said the stability in the vegetable oil markets kept some buying interest in the Canadian futures.
Scale-down exporter and domestic crusher pricing, along with a lack of significant farmer selling, was also supportive for canola.
At 10:49 CST, about 12,000 canola contracts had changed hands. Intermonth spreading was a feature as participants continue to square positions ahead of the New Year.
Milling wheat, durum, and barley futures were untraded and unchanged.
