By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 17, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Thursday, as an early rally gave way to speculative profit-taking.
Early advances in CBOT soybeans initially helped pull the March canola contract over the psychological C$600 per tonne level, but soybeans turned lower and canola retreated below unchanged as well.
Speculators were noted sellers as they were said to be bailing out of the market, according to a broker.
Aside from the technical selling, tightening canola supplies and improving crush margins did provide underlying support, but increased farmer selling and commercial hedges on the other side weighed on prices, said participants.
Expectations for large South American soybean supplies to soon be available also put some pressure on canola values, said a trader.
About 20,079 canola contracts were traded on Thursday, which compares with Wednesday when 18,109 contracts changed hands. Spreading accounted for about 12,872 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton