ICE: Canola posts small losses in “lacklustre” trade

Alana Vannahme, Resource News International

Winnipeg, March 26 — Canola futures on the ICE Canada platform were trading at unchanged to lower levels as of 10:43 CDT on Thursday in light, trade.

The CBOT soy complex opened higher but a lack of follow- through buying turned the market mixed, helping to weigh down canola prices. Soybeans were mixed, soyoil was stronger but off its highs and soymeal had turned lower.

The absence of fresh export sales and reports that Chinese canola demand will fall in April were bearish price influences as well, market watchers said.

Trade was described by a Winnipeg broker as "lacklustre." There was no reason for canola to be lower other than a lack of steady buying interest and a mixed tone in Chicago beans, he said.

Equity and energy markets were still stronger, albeit off their highs, and the Canadian dollar had pulled back to weaker levels.

Reluctance by market participants to take on new positions ahead of the March 31 U.S. Department of Agriculture acreage report likely accounted in part for the absence of demand, traders said.

In Argentina, the government will reportedly meet with striking farmers unions on Monday to try and resolve their dispute over export taxes. There are also reports that some exporters and crushers are already being forced to cancel contracts but these have not been confirmed.

Canola volumes were light, with only 3,922 contracts having changed hands as of 10:43 CDT. Of that amount, 2,772 trades were tied to spreading.

Western barley futures were unchanged amid thin trade that consisted entirely of spread-activity. There were 100 contracts traded as 10:43 CDT.

Prices in Canadian dollars per tonne at 10:43 CDT:

          Price    Change
Canola
     May     421.40    dn 0.40
     Jul     425.90    unch
     Nov     430.00    dn 0.80
 
Western Barley
     May     144.00    unch
     Jul     151.30    unch