ICE Canada Review: Canola Down Sharply For Third Straight Day

By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 19, 2012
Winnipeg – ICE Futures Canada canola contracts  closed sharply lower for the third consecutive session on Wednesday,  as heavy losses in the CBOT soy complex spilled over to weigh on  prices.

Read Also

Canadian Financial Close: Loonie continues downward slide

By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar pulled back some more on Wednesday, feeling the…

Speculative long liquidation was a feature, as the selling built  on itself and prices dropped to their lowest levels in a month.
Recent activity has shifted the technical bias to the downside  in canola, and traders exiting the market ahead of the New Year were  behind much of the selling pressure, according to participants.
The relatively favourable prospects for soybean crops in South  America were overhanging the oilseed markets as well, including  canola, said a broker.
However, scale-down exporter and domestic crusher pricing,  along with a lack of significant farmer selling, did help limit the  losses. Concerns over tightening Canadian supplies, and the need to  ration demand going forward, remained somewhat supportive as well.
About 26,280 canola contracts were traded on Wednesday, which  compares with Tuesday when 14,141 contracts changed hands. Spreading  accounted for about 20,618 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and  unchanged.

explore

Stories from our other publications