|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 25, 2012|
|Winnipeg – ICE Futures Canada canola contracts were weaker on Tuesday, as losses in CBOT soyoil and bearish chart signals kept the path of least resistance to the downside.
Recent price action in canola was seen as bearish from a technical standpoint, which made any attempts at moving prices higher a good selling opportunity, according to market participants. Speculators liquidating long positions were behind some of that activity.
Losses in CBOT soyoil and the relatively stable Canadian dollar also weighed on canola, as the crush margins continue to deteriorate for domestic processors.
Gains in CBOT soybeans and other international oilseed markets did provide some underlying support for canola, according to participants. Ongoing concerns over tightening Canadian canola supplies, a lack of significant farmer selling, and the likelihood that demand will need to be rationed going forward, also helped limit the losses.
About 11,986 canola contracts were traded on Tuesday, which compares with Monday when 11,562 contracts changed hands. Spreading accounted for about 7,408 of the contracts traded, with participants rolling out of the nearby November contract a feature of the spread activity.
Milling wheat futures were untraded, but revised lower after the close. Durum and barley were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 608.80 dn 2.60
Jan 612.10 dn 2.80
Mar 611.90 dn 2.40
Milling Wheat Oct 298.60 dn 2.90
Dec 303.80 dn 2.90
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of June 19, 2013
Prices are in Canadian dollars per metric ton