| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 18, 2012 |
Winnipeg – ICE Futures Canada canola contracts closed sharply lower on Tuesday, seeing follow-through selling on Monday’s losses as bearish technical signals and declines in the CBOT soy complex had speculators exiting long positions.News that China had canceled a number of purchases of US soybeans, along with improving South American crop conditions, accounted for some of the weakness in CBOT soybeans that spilled into canola, according to traders. Malaysian palm oil and European rapeseed futures were also down in overnight activity.
Read AlsoNorth American Grain/Oilseed Review: Prices drop after USDA November estimatesGlacier FarmMedia -– Canola futures erased earlier gains to end Friday in the red after declines in United States grains… A move below nearby chart support added to the weaker tone in canola, with some sell-stops hit along the way. However, a lack of significant farmer selling, as producers appear content to wait until the New Year to make more sales, did help limit the losses, according to a broker. Bargain hunting from end users was also said to be supportive, especially given the persistent concerns over tightening supplies in western Canada. Intermonth spreading was a feature of the activity in the canola market once again on Tuesday – as traders continue to roll their positions out of the front month. About 14,141 canola contracts were traded on Tuesday, which compares with Monday when 20,416 contracts changed hands. Spreading accounted for about 9,962 of the contracts traded. Milling wheat, durum, and barley futures were untraded and unchanged. |
