|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 20, 2012|
|Winnipeg – ICE Futures Canada canola contracts were weaker on Thursday, retesting recent lows as a sell-off in the CBOT soy complex spilled over to weigh on prices.
After posting only small losses in subdued trade for most of the day, a larger break lower in CBOT soybeans eventually spilled into the Canadian market. Sell-stops were hit on the way down, exaggerating the losses in canola as prices moved below nearby support, said participants.
Renewed global economic uncertainty, spurred on in part by soft manufacturing data out of China, accounted for some of the fund liquidation in the grains and oilseeds, including canola, said traders. The resulting selling pressure then built on itself as the day progressed.
However, the declines helped uncover some fresh commercial buying interest at the lows. Market participants are still concerned that the Canadian canola crop won’t be large enough to meet the projected demand this year, and crushers and exporters were said to be making some purchases on a scale-down basis.
A lack of significant farmer selling and a softer tone in the Canadian dollar also helped temper the declines in canola, said traders.
About 20,135 canola contracts were traded on Thursday, which compares with Wednesday when 10,045 contracts changed hands. Spreading accounted for about 7,428 of the contracts traded.
Milling wheat futures were untraded, although prices were revised higher after the close. Durum and barley were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 617.40 dn 17.20
Jan 620.70 dn 17.50
Mar 620.00 dn 18.30
Milling Wheat Oct 295.50 up 1.50
Dec 301.30 up 1.50
Durum Oct 310.10 unch
Dec 314.60 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton