|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 20, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower on Tuesday, retreating from earlier gains as speculative selling and a lack of fresh end user demand weighed on values.
Activity was two-sided and choppy, with positioning ahead of the US Thanksgiving holiday behind much of the speculative trade. The losses in canola came despite the firmer tone in CBOT soybeans.
Continued concerns about tight Canadian canola supplies and the need to ration demand going forward were also supportive, according to participants.
However, the smaller canola crop is largely priced into the market already. As a result, ideas that canola is looking overpriced compared to other oilseeds caused the market to lag soybeans the upside and eventually turn lower.
Beneficial weather for the development of the soybean crop in South America weighed on values as well, said traders.
General firmness in the value of the Canadian dollar, as it remained above parity with its US counterpart, was another bearish price influence.
About 10,470 canola contracts were traded on Tuesday, which compares with Monday when 14,682 contracts changed hands. Spreading accounted for about 5,052 of the contracts traded.
Durum saw some light activity, edging lower in two-sided commercial activity. Milling wheat and barley were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Jan 579.60 dn 0.40
Mar 577.10 dn 0.30
May 575.60 dn 0.60
Milling Wheat Dec 300.20 unch
Mar 309.70 unch
Durum Dec 311.80 dn 0.10
Mar 318.40 dn 0.10
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of March 11, 2014
Prices are in Canadian dollars per metric ton