By Phil Franz-Warkentin, Commodity News Service Canada
May 2, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CDT Thursday, retreating from overnight gains as speculative selling came forward to weigh on values.
Fund traders were the noted sellers, as they were liquidating long positions and booking profits amid overbought price sentiment, according to a broker. He said the weaker tone in CBOT soyoil put further pressure on canola.
The most active July contract dipped below the psychological C$600 per tonne level, which was bearish from a technical standpoint.
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Forecasts calling for warmer weather across the Prairies over the next week were also weighing on canola, as the improving weather was seen alleviating some of the concerns over planting delays in western Canada.
Scale down exporter and domestic crusher demand provided underlying support, limiting the losses to some extent, according to a broker.
Statistics Canada releases its latest stocks report on Friday, and positioning ahead of the data accounted for some of the activity in the futures as well. The report will show total canola supplies as of March 31, and should help determine how much the tightening old crop supplies need to be rationed going forward.
At 10:45 CDT, about 11,000 canola contracts had changed hands, with intermonth spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
