|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 17, 2012|
|Winnipeg – ICE Futures Canada canola contracts were sharply weaker on Monday, dropping in sympathy with the US soy complex as speculators booked profits on recent gains.
After canola futures set new contract highs on Friday the market was due for a correction, and chart-based long liquidation was a feature of the day’s activity. Sell-stops were hit on the way down, exaggerating the losses, according to participants.
The advancing North American harvest, together with improving planting prospects for soybeans in South America, added to the weaker tone.
However, there are still enough concerns over yield losses in western Canada to provide some support, said traders.
A softer tone in the Canadian dollar, which backed away from its recent highs, also helped temper the declines.
About 20,780 canola contracts were traded on Monday, which compares with Friday when 18,511 contracts changed hands. Spreading accounted for about 11,728 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded during the session. However, wheat prices were revised lower after the close, as bids and offers were both below market during the session.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 621.60 dn 30.00
Jan 625.40 dn 29.70
Mar 626.50 dn 29.10
Milling Wheat Oct 294.60 dn 9.90
Dec 300.40 dn 9.90
Durum Oct 306.90 unch
Dec 311.40 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton