|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 3, 2012|
|Winnipeg – Canola contracts on the ICE Futures Canada platform were narrowly mixed at 10:59 CDT Wednesday. Spillover weakness from the declines in the CBOT soy complex was being countered by speculative short-covering and concerns over tightening supplies.
The advancing US harvest and improving yield prospects for the soybean crop accounted for much of the selling in soybeans that spilled into canola, according to participants. Steady farmer deliveries were another bearish factor overhanging the canola market.
However, canola was lagging the soy complex to the downside, and posted small gains in some months as speculative short-covering was coming forward to provide support, according to a broker.
Positioning ahead of Thursday’s Statistics Canada production report also helped lend some independent strength to the canola market. The report is widely expected to show a smaller canola crop than previously forecast in August, but the extent of the cut remains to be seen. Trade estimates range from 14.0 million to 15.0 million tonnes, which would compare with the August forecast of 15.4 million tonnes and the year ago level of 14.2 million.
At 10:59 CDT, about 13,600 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 10:59 CDT:Price Change
Canola Nov 583.00 up 0.40
Jan 584.40 dn 1.10
Mar 580.90 dn 4.00
Milling Wheat Oct 293.60 unch
Dec 298.80 unch
Durum Oct 309.30 unch
Dec 313.80 unch
Barley Oct 245.00 unch
Dec 250.00 unch
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton