By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 12, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Tuesday, seeing a continuation of the speculative sell-off that’s weighed on values the past three sessions.
Canola traded in a mixed range in early activity, before turning lower to post large declines. Losses in CBOT soybeans accounted for some of the weakness in canola, with speculative selling a feature as some sell-stops were hit on the way down, said participants.
Larger than expected canola production in Australia and the looming South American soybean crops also weighed on values, said traders. A firmer tone in the Canadian dollar contributed to the declines in canola as well.
However, ongoing concerns over Canada’s tightening canola supplies did provide some underlying support, with end users buying on a scale-down basis. A slowdown in farmer selling was also helping limit the losses, as producers already made good sales last week when prices were still on the rise, said a broker.
About 19,574 canola contracts were traded on Tuesday, which compares with Monday when 28,230 contracts changed hands. Spreading accounted for about 15,586 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 December 6, 2013
Prices are in Canadian dollars per metric ton