|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 2, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower on Tuesday, taking their cue from the weaker CBOT soybean market once again.
The advancing US soybean harvest and improving South American crop conditions weighed on the oilseed markets in general, including canola, according to participants. A lack of fresh export business, with Chinese buyers on the sidelines for a national holiday, was another bearish price influence.
The recent weakness in canola has also shifted the technical bias to the downside, which added to the softer tone in the futures as any attempts at taking prices were seen as a good selling opportunity.
Steady farmer selling also weighed on prices, as solid cash bids in western Canada were said to be attracting more farmer deliveries.
Oversold price sentiment and scale-down end-user buying did provide some underlying support, according to participants.
Statistics Canada releases its latest production estimates on Thursday, and positioning ahead of the report was behind some of the activity. Traders are generally expecting a downward revision to the previous StatsCan canola estimate of 15.4 million metric tons. However, the extent of the StatsCan revision remains to be seen.
About 17,557 canola contracts were traded on Tuesday, which compares with Monday when 18,091 contracts changed hands. Spreading accounted for about 12,132 of the contracts traded.
Milling wheat, durum, and barley futures were untraded, but revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 582.60 dn 6.30
Jan 585.50 dn 6.80
Mar 584.90 dn 6.70
Milling Wheat Oct 293.60 dn 4.10
Dec 298.80 dn 4.10
Durum Oct 309.30 dn 2.60
Dec 313.80 dn 2.60
Barley Oct 245.00 dn 4.50
Dec 250.00 dn 4.50
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton