By Dwayne Klassen, Commodity News Service Canada
Winnipeg – February 21/13 – Canola futures on the ICE Canada
trading platform finished mixed with the nearby months down and the deferred slightly higher. Much of the downward price action in canola was associated with the taking of profits, market watchers said. Sentiment that values were overbought and due for a correction to the downside also added to the bearish price sentiment.
The declines experienced by CBOT soybean and soyoil futures
during the session and the losses seen overnight in Malaysian palm oil also were undermining price influences for canola, traders said.
Elevator company hedge selling, tied to a small pick up in farmer deliveries also weighed on canola futures.
The arrival of beneficial precipitation in the soybean growing
regions of Argentina further sparked some of the downward price
Canola had found support from the need to ration old crop canola
supplies, particularly as domestic crushers and export outlets
continue to seek out canola supplies, brokers said.
The downswing in the value of the Canadian dollar was also viewed
as an underpinning price influence, as it makes canola cheaper to
purchase on the international market, brokers said.
Spreading continued to be a feature of the activity in canola and
helped to bolster the volume total.
There were an estimated 28,246 canola contracts traded Thursday,
up from the 24,994 contracts that changed hands during the previous session. Of the contracts that changed hands, 20,526 were spread related.
No milling wheat, durum or barley contracts were traded.
Prices are in Canadian dollars per metric ton.
Futures Prices as of March 10, 2014
Prices are in Canadian dollars per metric ton