|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 17, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower in most months on Wednesday, despite gains in the CBOT soy complex. Ideas that canola was looking overpriced compared to other oilseeds accounted for some of the eventual weakness in the lightly traded market.
Exporters and domestic crushers were both on the buy side early in the day, as concerns over tightening canola supplies going forward had the commercials looking to make purchases before stocks get too scarce, said participants.
However, that commercial buying backed away by the close. As a result, declining crush margins and a lack of significant speculative interest in the market eventually helped drag prices lower. Farmer hedges were also said to be putting some pressure on values, although most of the producer selling was only coming forward on a scale-up basis.
The Canadian dollar was up by over three quarters of a cent relative to its US counterpart on Wednesday, weighing further on canola prices, according to a trader.
About 13,687 canola contracts were traded on Wednesday, which compares with Tuesday when 21,270 contracts changed hands. Spreading accounted for about 10,244 of the contracts traded.
Milling wheat futures were untraded, but were revised higher after the close. Durum and barley futures were untraded and unchanged.Settlement prices are in Canadian dollars per metric ton.
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton