By Phil Franz-Warkentin, Commodity News Service Canada
May 1, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were mostly weaker at 10:52 CDT Wednesday, as losses in the CBOT soy complex spilled over to weigh on values.
Increased soybean movement from Brazil and expectations for a large US crop accounted for some of the weakness in CBOT soybeans that spilled into canola, according to a broker.
Speculators bailing out of long positions and booking profits added to the selling pressure in the Canadian market, said the broker.
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Steady end user demand on a scale down basis, from both exporters and domestic crushers, provided some support and limited the losses in canola.
Tightening old crop supplies and concerns over planting delays for the new crop underpinned the futures as well, according to participants.
Statistics Canada releases its latest stocks report on Friday, and positioning ahead of the data accounted for some of the activity in the futures as well. The report will show total canola supplies as of March 31, and should help determine how much the tightening old crop supplies need to be rationed going forward.
At 10:52 CDT, about 12,000 canola contracts had changed hands, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:52 CDT:
