|By Phil Franz-Warkentin, Commodity News Service Canada|
|Nov. 30, 2012|
|Winnipeg – ICE Canada canola futures were weaker Friday morning, as speculators were booking profits on recent gains ahead of the weekend.
After moving higher for most of the past week, canola was due for a correction from a chart perspective, said traders. The January contract neared the psychological C$600 per tonne level on Thursday, but ended well below that point.
Losses in the CBOT soy complex contributed to the softer tone in canola, according to traders. Malaysian palm oil and European rapeseed futures were also down in overnight activity.
A lack of significant farmer selling, as producers appear content to wait until the New Year to make more sales, helped limit the losses, according to traders. Solid end user demand and concerns that tightening supplies will need to be rationed going forward were also supportive.
Statistics Canada releases its final production estimates for the year on December 5, and some market participants are anticipating the agency will confirm an even smaller crop than predicted in the previous report.
About 1,100 canola contracts had traded as of 8:43 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:43 CST:Price ChangeCanola Jan 592.00 dn 5.20Mar 591.50 dn 5.70
May 591.00 dn 4.70
Milling Wheat Dec 308.00 unch
Mar 316.00 unch
Durum Dec 312.00 unch
Mar 316.00 unch
Barley Dec 245.00 unch
Mar 248.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton