By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 31, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Thursday, after trading to both sides of unchanged in choppy activity.
Losses in CBOT soybeans accounted for some of the spillover selling pressure in canola, although soybeans finished well off their session lows and soyoil closed higher.
Increased farmer selling, as producers take advantage of the higher prices, was also said to be putting some pressure on canola values. A move back above parity with its US counterpart for the Canadian dollar was another bearish influence.
Speculative profit-taking weighed on values as well, according to traders. However, the charts remain pointed higher and any losses were also seen as good buying opportunities, said an analyst.
Concerns over the tightening supply situation in western Canada were underpinning the futures as well, with domestic crushers continuing to try and bring in more supplies before they run out, said a broker.
About 27,071 canola contracts were traded on Thursday, which compares with Wednesday when 25,645 contracts changed hands. Spreading accounted for about 24,200 of the contracts traded, with month-end positioning a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
Futures Prices as of May 22, 2013
Prices are in Canadian dollars per metric ton