By Dwayne Klassen, Commodity News Service Canada
May 14, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading in a narrowly mixed range in early Tuesday morning activity. The nearby July future was on the defensive while the November and forward contracts were posting fractional advances.
Market watchers said some of the activity was the realigning of spreads while some participants felt canola futures were consolidating and awaiting clear direction from the outside oilseed sector.
Overhead technical resistance helped to put downward pressure on the nearby July contract with the generally weaker tone in CBOT soybean and soyoil futures also adding to some of the bearish sentiment in the contract, traders said.
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Fading old crop demand was also viewed as an undermining price influence.
Some of the support for old crop, however, continues to come from the tight old crop supply situation and the reluctance of farmers to deliver any canola still stored on farm.
New crop months have found support from the wet and cool weather which has delayed seeding operations across the Canadian prairies. However, reports from the provincial ag departments are indicating that seeding is underway in each of the provinces.
As of 08:40 CDT, about 1,560 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 08:40 CDT:
