|By Phil Franz-Warkentin, Commodity News Service Canada|
|Sept. 25, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were holding near unchanged at 10:47 CDT Tuesday, as the market saw some consolidation after its recent weakness. Activity was described as ‘lackluster,’ with participants unwilling to move prices too far one way or the other.
Overnight gains in CBOT soybeans and other international oilseed markets accounted for some of the buying interest in the canola market, according to participants. Ongoing concerns over tightening Canadian canola supplies, and the likelihood that demand will need to be rationed going forward, provided further support.
In addition, “farmers continue to lock up their bins” in western Canada, and the lack of heavy hedge selling underpinned the canola market as well.
However, losses in the US wheat futures spilled into the other grains and oilseeds, including canola, said a broker. A downturn in CBOT soyoil was also weighing on prices.
Bearish chart signals, after the recent weakness, kept canola under pressure as the day progressed as well, according to participants.
At 10:47 CDT, about 4,500 canola contracts had changed hands. The November/January spread was a feature of the activity, as fund traders were busy rolling positions out of the front month.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:47 CDT:Price Change
Canola Nov 611.30 dn 0.10
Jan 615.20 up 0.30
Mar 614.00 dn 0.30
Milling Wheat Oct 301.50 unch
Dec 306.70 unch
Durum Oct 311.90 unch
Dec 316.40 unch
Barley Oct 250.30 unch
Dec 255.30 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton