|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 1, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower on Monday, as sharp declines in the CBOT soy complex spilled over to weigh on values.
Bearish technical signals added to the weaker tone in canola, as the nearby November contract tried and failed to retest the C$600 per tonne level. That key chart point now represents solid upside resistance for canola, according to analysts.
Holidays in China this week put further downward pressure on the oilseeds, given the lack of fresh buying interest from the country. Increased farmer selling in western Canada was another bearish factor for canola, according to a broker.
However, scale down domestic crusher buying interest did provide some underlying support, as the processors continue to operate at a solid pace. Uncertainty over the size of the Canadian canola crop, ahead of Thursday’s Statistics Canada production report, was also somewhat supportive.
About 18,091 canola contracts were traded on Monday, which compares with Friday when 24,448 contracts changed hands. Spreading accounted for about 11,662 of the contracts traded.
Milling wheat and barley futures were untraded, but revised lower after the close. Durum was untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 589.90 dn 7.90
Jan 593.00 dn 8.80
Mar 591.40 dn 10.00
Milling Wheat Oct 297.70 dn 2.80
Dec 302.90 dn 2.80
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 249.50 dn 0.80
Dec 254.50 dn 0.80
Futures Prices as of May 22, 2013
Prices are in Canadian dollars per metric ton