|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 24, 2012|
|Winnipeg – ICE Futures Canada canola contracts were weaker on Monday, seeing some follow-through selling on last week’s declines. Losses in the CBOT soy complex spilled over to weigh on values.
Speculators liquidating long positions were behind much of the selling pressure in canola, according to traders. The advancing US soybean harvest and improving South American crop prospects added to the softer tone.
However, canola managed to settle well off its lows for the day as ongoing concerns over the size of the Canadian crop provided underlying support. Domestic crushers were noted buyers on a scale-down basis amid worries that supplies may not be large enough to meet the projected demand going forward.
A lack of significant farmer selling provided further support for canola, as the production uncertainty in western Canada has many farmers reluctant to make any additional sales, said a broker. A weaker tone in the Canadian dollar also helped limit the losses in canola.
About 11,562 canola contracts were traded on Monday, which compares with Friday when 10,848 contracts changed hands. Spreading accounted for about 2,278 of the contracts traded.
Milling wheat, durum, and barley futures all held steady on the day. Wheat and barley were both untraded, while durum saw some very light two-sided spread activity.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 611.40 dn 1.50
Jan 614.90 dn 1.30
Mar 614.30 dn 1.40
Milling Wheat Oct 301.50 unch
Dec 306.70 unch
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton