By Terryn Shiells, Commodity News Service Canada
December 27, 2013
WINNIPEG – ICE Futures Canada Canola contracts were weaker on Friday, once again closing at fresh contract lows.
Some of the declines were linked to the weakness seen in the Chicago soy complex on Thursday, as the Canadian market was said to be catching up after being closed Thursday for Boxing Day.
Speculative based selling and a bearish technical bias were also responsible for some of the price softness.
The large Canadian canola crop, logistical problems in Western Canada and expectations of big Canadian canola ending stocks continued to overhang prices.
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However, the sharp downswing in the value of the Canadian dollar limited the losses. The weaker currency made canola more attractive to exporters and crushers.
Spillover support from the advances seen in Chicago soybeans on Friday also tempered the declines.
About 21,630 canola contracts were traded on Friday, which compares with Tuesday when 15,502 contracts changed hands. Canadian markets were closed Wednesday and Thursday for Christmas and Boxing Day. Spreading was the feature, and accounted for 19,536 of the trades.
Milling wheat, durum and barley prices were untraded following price revisions after the close on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
