By Dwayne Klassen, Commodity News Service Canada
February 8, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at mainly weaker price levels at 10:36 CST Friday morning with the taking of profits and the declines in CBOT soybean values linked to the losses, market watchers said.
Sentiment that the advances seen in March during Thursday’s session were overdone and that values needed to correct to the downside, helped to weigh on values.
The volume total in canola was described as pretty significant, although price activity was seen as choppy as participants await the 11:00 CST release of USDA supply/demand numbers. A good portion of the volume in canola consisted of spreading, with the large commodity funds beginning to move positions out of March and into other months, traders said.
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Elevator company hedge selling continued to exert downward pressure on canola, with much of that interest spurred on by steady farmer deliveries of canola into the cash pipeline, brokers said. Farmers were continuing to take advantage of strong cash bids being offered by both processors and elevator companies.
Underlying support in canola came from the tight supply situation and the steady demand that continues to emanate from the domestic and export sectors, brokers said.
As of 10:36 CST, about 17,658 canola contracts had traded. Of those contracts, spreading accounted for 14,256 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:36 CST:
