|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 12, 2012|
|Winnipeg – ICE Canada canola futures were weaker Friday morning, seeing a correction from Thursday’s rally amid ideas that the gains were overdone.
A turn lower in the CBOT corn and soybean markets, after both commodities rallied in response to updated USDA supply/demand data on Thursday, accounted for much of the spill-over selling in canola, according to participants. Expectations for a large South American soybean crop were also overhanging the oilseed markets, including canola.
A lack of significant farmer selling did temper the losses, as producers are said to be holding out for higher prices given the yield losses reported across western Canada this fall.
Supportive technical signals also helped limit the declines, as the nearby bias in the charts has turned higher. As a result, any declines were being seen as good buying opportunities, according to an analyst.
About 3,000 canola contracts had traded as of 8:53 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:53 CDT:Price Change
Canola Nov 613.80 dn 7.70
Jan 610.80 dn 9.20
Mar 606.30 dn 8.90
Milling Wheat Dec 303.00 unch
Mar 312.50 unch
Durum Dec 313.00 unch
Mar 319.60 unch
Barley Dec 250.00 unch
Mar 253.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton