By Phil Franz-Warkentin, Commodity News Service Canada
June 20, 2013
Winnipeg – ICE Futures Canada canola contracts were weaker on Thursday, as losses in the outside financial and commodity markets provided the catalyst for some speculative selling in canola as well, according to participants.
Ideas that the US Federal Reserve may soon be reducing its economic stimulus measures accounted for much of the risk aversion seen in many markets today, including canola, said traders.
Losses in CBOT soybeans and the relatively favourable North American production prospects contributed to the declines. However, with supplies on the tight side, heavy rainfall in parts of western Canada served as a reminder that there was still a long growing season ahead, said a broker.
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Scale down commercial demand did help underpin the canola market as well, as exporters and domestic crushers took advantage of the downturn to price some routine business.
The weaker tone in the Canadian dollar, which was down by about a cent relative to its US counterpart, was also supportive for canola.
About 12,466 canola contracts were traded on Thursday, which compares with Wednesday when 18,164 contracts changed hands. Spreading accounted for about 6,740 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday.
Settlement prices are in Canadian dollars per metric ton.
