Winnipeg Commodity Exchange canola futures settled steady to lower on Friday after pressure from farmer and fund selling, but the market found support at contract lows set on Thursday, traders said. Canola ended 10 cents per tonne higher to $1.50 lower, with January up 10 cents at $278.60, March steady at $280.50 and November down 70 cents at $289.50. The market opened lower on commercial selling, traders said.
Fimat Canada and RBC-DS were noted sellers. Cargill was also an early seller of January and March.
Values found some support from short covering as Chicago Board of Trade soybean futures posted gains. The weaker Canadian dollar was also seen as supportive.
Overnight export business was estimated at 8,000 to 10,000 tonnes.
Fund selling entered the pit near the end of the session. Refco was a noted seller. Commercials were seen on both sides of the market at the close. The January/March spread continued to be the feature, with as many as 1,700 trading between $2.30 and $1.70.
Commercial shorts have been rolling forward positions ahead of the holiday season lull, which coincides with the transition of the WCE to a completely electronic exchange.
Funds also hold a large short position in the market, but most of it has not yet been rolled out of January, traders said..
The January/July spread traded at $10.50 and $10.00. Total canola volumes were estimated at 6,836 contracts, down from 7,534 on Thursday. Barley futures ended mixed within its recent narrow range.
December ended 60 cents per tonne higher at $120.50, providing support to March, which ended 10 cents lower on local profit taking.
The December/March spread traded on legs at $1.30 and $1.40, premium December.
Feed wheat futures settled lower after late commercial selling, with March down 90 cents per tonne at $88.00 and May down 50 cents at $93.00. Agricore United made delivery against nine December contracts with Refco taking delivery.
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