By Phil Franz-Warkentin, Commodity News Service Canada
March 11, 2013
Winnipeg – ICE Futures Canada canola contracts closed narrowly mixed on Monday, with small gains in the front months and a softer tone in the more deferred positions.
Gains in CBOT soybeans did help underpin the futures for most of the day, according to participants. Concerns over tightening canola supplies and the need to ration demand going forward helped underpin the front months as well.
However, expectations for large South American soybean crops and the likelihood of increased canola production in 2013 did limit the upside potential, especially in the new crop contracts, said traders.
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A lack of new exporter or domestic crusher demand, after end users made good purchases last week, limited the upside potential in canola. Speculators were also said to be largely on the sidelines.
Farmer selling has also slowed down for the time being, and that lack of hedge pressure limited the losses in the deferred contracts.
About 7,215 canola contracts were traded on Monday, which compares with Friday when 10,984 contracts changed hands. Spreading accounted for about 2,388 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
