By Dwayne Klassen, Commodity News Service Canada
January 31, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at mostly weaker price levels at 08:37 CST Thursday morning with the declines a function of month-end profit-taking as well as a correction to the downside after recent sharp gains, market watchers said.
Losses in CBOT soybean and soyoil futures this morning contributed to the bearish sentiment seen in canola. Attractive cash bids being offered by elevator companies helped to stimulate farmer selling overnight which in turn encouraged some weakness.
Canola is also attempting to penetrate new technical resistance lines and some of the selling seen early Thursday came as values were unable to hold those lines, brokers said.
The downside in canola is being restricted by the extremely tight supply situation in western Canada. Steady demand from the domestic and export sectors was also helping to keep a firm floor under canola.
Gains overnight in Malaysian palm oil and European rapeseed futures also were considered underlying supportive influences, traders said.
Activity in canola was described as light and choppy with some participants awaiting fresh developments on the weather front in South America. Next week’s grain stocks in all positions report from Statistics Canada was also being awaited.
As of 08:37 CST an estimated 1,081 canola contracts had changed hands. Prices are in Canadian dollars per metric ton and were as of 08:37 CST.
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton