|By Phil Franz-Warkentin, Commodity News Service Canada|
|August 1, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower on Wednesday, as spill-over from losses in CBOT soybeans and profit-taking on recent gains weighed on prices.
Forecasts calling for improved weather conditions for the US soybean crop, and the resulting losses in CBOT soybeans, accounted for some of the selling pressure in canola, according to participants.
Ideas that the Canadian canola crop is in relatively decent shape, despite having its own weather related problems in some areas, contributed to the declines in the Winnipeg futures.
Losses in Malaysian palm oil and European rapeseed futures, along with uncertainty in the global financial markets ahead of some key announcements from policy makers, added to the selling pressure. Some speculative sell-stops were hit on the move lower, said traders.
However, canola finished well off its lows for the day, as solid end-user demand underneath the market provided support.
About 18,680 canola contracts were traded on Wednesday, which compares with Tuesday when 15,255 contracts changed hands.
Milling wheat futures were sharply lower, although only two contracts had actually traded hands on the first day of the new open market in western Canada. Durum was untraded, but revised lower after the close while barley was both untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 620.00 dn 11.30
Jan 622.10 dn 11.40
Mar 623.10 dn 11.90
Milling Wheat Oct 297.50 dn 20.00
Dec 305.00 dn 20.00
Durum Oct 311.50 dn 14.00
Dec 316.00 dn 14.00
Barley Oct 264.50 unch
Dec 269.50 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton