ICE Canadian canola futures slipped as investors booked profits near year's end and snapped a seven-day winning streak on Wednesday, traders said. Weaker Chicago soya markets and near-parity Canadian dollar, which weigh on crusher margins, added pressure.
Nearby canola rose 4 percent from December 15 through Monday, setting contract highs. January canola ended down $4.20 at $577.30, volume 4,288. Most-active March down $3.90 at $585.90, volume 6,615. January/March spread traded 3,939 times, settling at $8.60, premium March, as investors roll positions forward.
Total volume of nearly 12,000 contracts down about one-third from Monday but modestly higher than year-ago. Market open interest of about 194,000 contracts as of Tuesday nearly double that of a year ago as high prices lead to big long positions from end users and hedging by commercials against brisk farmer deliveries-traders. CBOT January soyabeans fell 9-3/4 US cents to US $13.66 per bushel, weighed by profit-taking. January soyaoil was down 0.44 cent at 56.38 US cents per lb. Canadian dollar trading near parity at $1.0003 to the US currency or 99.97 US cents at 1:15 CDT (1915 GMT), up from its Friday finish at $1.0064 to the US dollar, or 99.36 US cents.
NYMEX crude oil futures, linked to canola through use in biofuels, down 31 US cents at US $91.18 per barrel. US removes ADM Windsor canola plant from restricted list. US analyst lowers Argentina soyabean crop forecast. Coming up: First notice day is Friday for tendering canola futures contracts for delivery.