By Phil Franz-Warkentin, Commodity News Service Canada
November 15, 2013
Winnipeg – ICE Futures Canada canola contracts were down sharply on Friday, settling at their lowest level in a month as declines in the CBOT soy complex weighed on values.
The speculative selling built on itself as the day progressed, although volumes were on the lighter side which may have exaggerated the declines, said a trader.
The record large supply situation in Western Canada remains a bearish influence overhanging the canola market as well, providing the futures with little incentive to move higher without any outside support.
While the losses were bearish from a technical standpoint, canola still managed to hold above major support. Scale-down end user demand and the firmer tone in Malaysian palm oil overnight helped underpin the futures as well.
About 24,570 canola contracts were traded on Friday, which compares with Thursday when 29,771 contracts changed hands. Spreading accounted for 12,808 of the contracts traded.
Milling wheat, durum and barley futures were untraded, although wheat was revised lower after the close.
Settlement prices are in Canadian dollars per metric ton.
