By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 12/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at significantly weaker price levels at 10:48 CDT Friday morning with the taking of profits and the sell-off in the CBOT soybean complex accounting for most of the downward slide in value, market watchers said.
The liquidation of positions ahead of the weekend contributed to the price declines seen in canola.
Some of the price weakness also came from elevator company hedge selling which was in anticipation of increased farmer deliveries of canola into the cash pipeline in western Canada, traders said.
Some of the downward price action also came amid commodity fund liquidation.
General firmness in the Canadian dollar also was an undermining price influence.
The downward price action in canola was restricted in part by scale down exporter pricing of old business. Concerns about the tighter supply situation for canola also provided some minor support.
Spreading was again a feature of the activity in canola with participants continuing to roll positions out of the nearby November future and into the January contract.
As of 10:48 CDT, about 9,812 canola contracts had traded. Of the contracts traded, 6,634 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:48 CDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton