|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 2, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 11:03 CDT Tuesday, as losses in the CBOT soy complex spilled over to weigh on values.
The recent weakness in canola has shifted the technical bias to the downside, which added to the softer tone in the futures, according to participants.
US harvest pressure, improving South American crop conditions, and a lack of fresh export business also weighed on prices, according to participants.
Steady farmer selling was another bearish factor overhanging the futures, according to a trader. He said strong basis levels in western Canada were attracting more farmer sales, as concerns over tightening supplies going forward are forcing the end users to bid up in the cash market.
That exporter and domestic crusher demand was also finding its way into the futures, which helped limit the losses. Ideas that canola was starting to look oversold provided some support as well.
At 11:03 CDT, about 8,600 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 11:03 CDT:Price Change
Canola Nov 586.80 dn 2.10
Jan 589.90 dn 2.40
Mar 590.40 dn 1.20
Milling Wheat Oct 297.70 unch
Dec 302.90 unch
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 249.50 unch
Dec 254.50 unch
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton