| By Phil Franz-Warkentin, Commodity News Service Canada |
| Jan. 27, 2012 |
| Winnipeg – ICE Futures Canada canola contracts closed lower on Friday, as profit-taking to end the week and an increase in farmer selling weighed on values.A softer tone in the CBOT soy complex contributed to the declines in canola, as the Canadian market lacked any real fresh fundamental news of its own to provide direction, said a broker.
Farmers were said to be aggressive sellers, taking advantage of solid basis levels in western Canada. As a result, line companies were active in the futures, hedging against those producer deliveries, said a broker. On the other side, routine Japanese export pricing provided underlying support for canola. Fund traders were also buying on a scale-down basis, said market participants. The uncertain weather and production situation in South America did keep some caution in the futures market, and helped keep canola well within its established range heading into the weekend. About 23,006 canola contracts were traded on Friday, which compares with Thursday when an estimated 24,193 contracts changed hands. Spreading was a feature, accounting for 21,968 of the contracts traded. About 20 western barley and about 45 of the new barley contracts traded on Friday. The new crop futures posted sizeable advances as liquidity slowly starts to build in the contracts. Milling wheat and durum futures were both untraded on the last day of their first week of trade. Settlement prices are in Canadian dollars per metric ton. Price Change Canola Mar 524.40 dn 2.90 May 531.30 dn 2.40 Nov 509.40 dn 4.20 Western Barley Mar 212.00 unch May 216.00 up 1.00 Milling Wheat Oct 265.00 unch Dec 270.00 unch Durum Oct 268.50 unch Dec 273.00 unch Barley Oct 181.00 up 10.00 Dec 184.00 up 9.00
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