By Phil Franz-Warkentin, Commodity News Service Canada
September 16, 2013
Winnipeg – ICE Futures Canada canola contracts were sharply weaker on Monday, moving below nearby chart support as losses in CBOT soybeans and ongoing harvest pressure weighed on values. Improving US moisture conditions triggered the speculative sell-off in soybeans that spilled into the canola market, according to a broker. A move below chart support, at C$492 per tonne in the November contract, added to the weaker tone in canola.
In addition to the speculative long liquidation, farmer hedges also weighed on canola as the Canadian harvest continues to move forward. Expectations for a record large canola crop remained a bearish influence as well.
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Reports of light frost in parts of Manitoba and Saskatchewan over the weekend were a little supportive. However, the temperatures weren’t cold enough to cause any serious damage and
forecasts look favourable over the next week, said a broker.
About 25,204 canola contracts were traded on Monday, which compares with Friday when 23,113 contracts changed hands.
Milling wheat, durum and barley futures were untraded after seeing some price revisions following Friday’s close.
Settlement prices are in Canadian dollars per metric ton.
