|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 27, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were down at 10:39 CDT Thursday, seeing a continuation of their recent declines as speculators continue to liquidate their long positions.
After dropping below key support levels on Wednesday, the nearby technicals have turned bearish for canola, according to a commission house broker. He said speculators were still holding on to large long positions, and were looking to reduce some of their risk exposure ahead of Friday’s USDA quarterly stocks report.
Domestic crushers were also on the sell side of the market on Thursday, according to the broker.
Ongoing concerns that Canada’s canola crop was not as large as original expectations have largely been priced into the futures for the time being, but that production uncertainty did provide some underlying support, said participants.
Farmers remain on the sidelines, as they are still said to be optimistic that prices will turn higher going forward.
A firmer tone in CBOT soyoil and soybeans also helped limit the losses in canola.
At 10:39 CDT, about 9,200 canola contracts had changed hands. Intermonth spreading was a feature, as traders continue to roll out of the nearby November contract.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:39 CDT:Price Change
Canola Nov 591.40 dn 3.70
Jan 595.10 dn 3.40
Mar 593.80 dn 3.70
Milling Wheat Oct 295.50 unch
Dec 300.70 unch
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 22, 2013
Prices are in Canadian dollars per metric ton