|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 27, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed lower on Thursday, seeing follow-through selling on recent declines as fund traders continued to bail out of long positions.
Bearish technical signals, as prices fell below some key chart points on Wednesday, accounted for some of the speculative long liquidation that weighed on values, according to participants. A lack of any significant end user demand, aside from scale-down pricing of old business, was also bearish for prices.
Renewed strength in the Canadian dollar, which moved up by about half a cent relative to its US counterpart, weighed further on canola, said traders.
In addition, ongoing concerns over yield losses in parts of western Canada have largely been priced into the futures for the time being. However, that production uncertainty did provide some underlying support.
Oversold price sentiment, a lack of farmer selling, and gains in CBOT soyoil also served to limit the losses in canola.
About 21,622 canola contracts were traded on Thursday, which compares with Wednesday when 22,635 contracts changed hands. Spreading accounted for about 10,154 of the contracts traded.
Milling wheat futures were untraded, but revised lower after the close. Durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.Price Change
Canola Nov 591.90 dn 3.20
Jan 595.60 dn 2.90
Mar 595.60 dn 1.90
Milling Wheat Oct 290.70 dn 4.80
Dec 295.90 dn 4.80
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton