WINNIPEG: ICE Canadian canola futures closed lower on Wednesday, retreating on profit-taking and scattered farmer sales after most contract months set life-of-contract highs, traders said.
Oilseed prices have been climbing due in part to a port worker strike in Argentina and concerns that dry conditions could limit the soya harvest in South America. Most-active March canola reached a life-of-contract high of $637.30 per tonne before turning lower, settling down $3.10 on the day at $632.90 per tonne. All canola contracts except for thinly traded January posted fresh contract highs on Wednesday.
The January-March canola spread weakened, with the January settling at a $3.70 discount to the March contract, a day after closing at a $1.60 premium to the March. Investors have been rolling January positions forward ahead of the contract's expiry next month.
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