Winnipeg Commodity Exchange canola futures were pressured by farmer selling and by losses in allied US soya futures on Tuesday, traders said, with the nearby March contract ending 2 percent lower. Canola settled $4.00 to $7.40 per tonne lower, with March down $7.40 at $378.70, May down $4.90 at $388.60 and November down $4.00 at $383.00.
"It was weak yesterday, and corn couldn't hold the limit" on Tuesday, a canola trader said, explaining how weakness in US markets spilled over into canola futures. March soyaoil settled 0.36 US cent per lb lower at 28.79 US cents and March soyabeans were down 8 US cents per bushel at US $7.08-1/2.
Exporters and crushers were scale-down buyers, although crusher buying backed off later in the session because of weakness in CBOT soyaoil futures. Traders saw funds on both sides of the market, but said they were likely small net sellers of canola.
Traders said 1,100 July/November spread traded at $13, with hedgers buying the spread against speculative selling, and 502 March/May traded from $9 to $9.40. Volumes were estimated at 8,952 contracts, up from a total of 7,854 on Monday.
Barley futures traded lower on profit taking and liquidation amid a lack of buying interest, traders said.
Market-on-close selling pressured March futures to end $5.00 per tonne lower at $180.50, which traders said was partly due to lingering technical issues after last week's problems with the e-cbot trading platform that continued to prevent automatic legging of spread trades. May barley settled $3.50 per tonne lower at $191, with December down $1.00 at $149.40.
Barley volume was estimated at 230 contracts, down from 976 on Monday. Feed wheat futures saw continued long liquidation from both speculative and commercial interests, although speculators were also seen as buyers with the recent gains in US corn futures, traders said.
March wheat was down $2.00 per tonne at $168.00, with May down $1.00 at $174.00 and October down $2.50 at $158.00. Traders said 100 March/May spread traded at $6. Volume was estimated at 1,111 contracts, up from 292 on Monday.
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