| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 20, 2012 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were lower at 10:53 CST Thursday, as speculators continued to bail out of the market ahead of the New Year. Losses in the CBOT soy complex accounted for much of the selling pressure in canola, according to traders. Disappointing US export news and improving South American crop prospects were behind much of the weakness in soybeans that spilled into canola. Read AlsoU.S. Grain/Oilseed Review: Soybeans, wheat fend off weaker crudeSOYBEAN futures at the Chicago Board of Trade were slightly higher on Friday, holding off the sharp declines in crude… The fundamentals for canola are also looking much more supportive than the other oilseed markets, as evidenced by the very strong basis levels in Western Canada, according to an analyst. He said the tight supply situation would limit the downside potential in canola, but noted that the futures were divorcing themselves from the cash market. At 10:53 CST, about 22,000 canola contracts had changed hands. Intermonth spreading was a feature as participants continue to square positions ahead of the New Year. Milling wheat, durum, and barley futures were untraded and unchanged. |
