|Winnipeg – ICE Futures Canada canola contracts closed lower on Monday, as an early attempt at breaking above nearby resistance failed to trigger any follow-through buying interest.Canola moved higher in overnight activity, testing the C$600 per tonne level in the January contract as gains in the CBOT soy complex provided support. However, soybeans retreated from their highs and losses in CBOT corn and wheat spilled over weigh on values.Intermonth spreading accounted for most of the volumes in canola, as traders were busy rolling out of the January contract ahead of the New Year. Participants were said to be looking to square up their positions ahead of the Christmas holiday and traditional slow-down in activity.
Firmness in the cash market, a lack of significant farmer selling, solid end user demand, and ongoing concerns over tightening supplies in western Canada did provide underlying support for canola, limiting the losses, according to participants.
About 20,416 canola contracts were traded on Monday, which compares with Friday when 22,829 contracts changed hands. Spreading accounted for about 17,828 of the contracts traded.
Durum futures held steady in thin commercial activity. Milling wheat and barley were both untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.