By Dwayne Klassen, Commodity News Service Canada
May 9, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Thursday’s session on a mainly firmer footing with the July, Nov and Jan contracts experiencing any kind of price movement during the day. Values in all three contracts moved to both sides of the plus/minus line reflecting the thin volume total, market watchers said.
A number of market participants were said to have taken to the sidelines to await the outcome of Friday’s new supply/demand tables scheduled to be released by the USDA.
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Some of the support in the nearby canola contracts came from the tight old crop supply situation and the reluctance of farmers to deliver into the cash pipeline, brokers said.
The strength displayed by CBOT soybean and soyoil futures also provided a firm floor for canola to work with.
Some of the selling in the market reflected a drop off in demand from domestic crushers and export outlets, traders said. Some chart-based liquidation in new crop months was also evident and helped to weigh on values.
The general firmness of the Canadian dollar was also an undermining price influence.
Some of the selling in new crop canola contracts also came in response to the improved weather conditions across most of western Canada and was allowing farmers to make some good progress in spring fieldwork preparations and to some degree the planting of a few acres, brokers said.
There were an estimated 8,357 canola contracts traded Thursday down from the 10,622 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
