By Dwayne Klassen, Commodity News Service Canada
April 26, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished mainly on the defensive Friday with end of month liquidation orders from speculative and commodity fund accounts behind some of the price weakness, market watchers said.
The unaggresive nature of the buying that surfaced during the session also helped to generate some of the downward price action, traders said.
It did not take much in the way of buying or selling to push canola futures in either direction in view of the lighter volume totals, brokers said.
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Overbought price sentiment helped to weigh on canola with the pricing of canola by farmers at the elevator system contributing to the price declines, traders said.
Early losses in CBOT soybean and soyoil values had also influenced some of the bearish sentiment in canola. However, when nearby CBOT soybean values turned higher, the selling in canola was tempered.
Concerns about tight old crop canola stocks helped to restrict the price declines, brokers said. Delays in seeding new crop canola also was viewed as supportive.
There were an estimated 18,925 canola contracts traded Friday, down from the 21,143 contracts that changed hands during the previous session. Of the contracts traded, 13,414 were spread related.
No milling wheat, durum or barley contracts were traded during the session. However, durum values were lowered by ICE Canada at the close.
Prices are in Canadian dollars per metric ton.
