|By Terryn Shiells, Commodity News Service Canada|
|August 30, 2012|
|WINNIPEG – Canola futures on the ICE Futures Canada platform were trading at mostly lower price levels at 8:33 CDT Thursday, with only the nearby November contract posting slight gains.
Sentiment that Wednesday’s advances were overdone and in need of a downward correction weighed on values, industry officials said.
Some softness seen in CBOT soybean and soyoil futures also generated some of the downward price action in canola, traders said.
Profit-taking after Wednesday’s highs helped to bring values down in CBOT soybeans, soyoil and canola, market watchers said.
Increased deliveries of canola into the cash pipeline by producers and general firmness in the value of the Canadian dollar were also undermining price influences, participants said.
Generally good conditions for the advancement of the harvest across western Canada also put downward pressure on canola values, brokers said.
Some chart-based liquidation, as traders were squaring positions ahead of the Labour Day long weekend, added to the bearish price sentiment.
However, gains posted during overnight trade in both Malaysian palm oil and European rapeseed provided some underlying support for canola.
Activity was light and “choppy”, as many traders are waiting for fresh news in the market before making any big decisions, participants said.
As of 8:33 CDT, about 460 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
|Nov||634.00||up 0.50 Jan 637.00 dn 0.40 Mar 634.70 dn 3.60 Milling Wheat Oct 301.80 unch Dec 309.00 unch Durum|
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton