|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 15, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower on Monday, falling below nearby chart support as losses in CBOT soybeans spilled over to weigh on prices.
Expectations for a large South American soybean crop, chart-based liquidation, and ongoing US harvest pressure were all said to be behind some of the weakness in soybeans that spilled into the Canadian market. Speculators were behind much of the selling pressure, although the larger fund traders kept to the sidelines in canola, according to a Winnipeg-based broker.
The move below psychological support at C$600 per tonne in the November canola contract triggered sell-stops as well, contributing to the losses, said participants.
However, canola did lag soybeans to the downside, as concerns over tightening supplies in western Canada provided support.
Farmers also remain reluctant sellers, keeping the hedge pressure to a minimum, said a broker. That lack of farmer deliveries was forcing exporters and domestic crushers to pay up in order to secure supplies.
About 21,718 canola contracts were traded on Monday, which compares with Friday when 21,242 contracts changed hands. Spreading accounted for about 16,722 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Canola Nov 596.70 dn 10.00
Jan 595.70 dn 9.90
Mar 593.50 dn 9.30
Milling Wheat Dec 297.40 unch
Mar 306.90 unch
Durum Dec 312.40 unch
Mar 319.00 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton