By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 9, 2014
Winnipeg – ICE Futures Canada canola contracts were weaker on Monday, hitting fresh contract lows once again as the path of least resistance remains pointed down from both a technical and a fundamental standpoint.
Canada’s record large canola crop continued to overhang the market, said traders. While crush margins remain historically strong, the domestic crush has been running behind expectations and logistics issues are also expected to limit the export potential going forward, according to participants. The resulting likelihood of a large carry-out was a bearish influence on the market.
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A firmer tone in the Canadian dollar contributed to the declines in canola, as the currency recovered slightly after posting large losses relative to its US counterpart last week.
Gains in CBOT soybeans did provide some spillover support for canola. Ideas that canola is looking cheap compared to most other oilseeds also helped temper the declines, according to traders.
About 14,906 canola contracts were traded on Monday, which compares with Friday when 29,810 contracts changed hands. Spreading accounted for 9,808 of the contracts traded.
Milling wheat, durum and barley futures were untraded after wheat saw some price revisions following Friday’s close.
Settlement prices are in Canadian dollars per metric ton.
