By Phil Franz-Warkentin, Commodity News Service Canada
November 13, 2013
Winnipeg – ICE Futures Canada canola contracts were lower on Wednesday, as bearish technical signals, light farmer selling, and the firmer Canadian dollar all weighed on prices.
The January canola contract settled at its highest level in over two weeks on Tuesday and was said to be due for a correction from a technical standpoint. With farmers holding onto record large supplies this year, producer selling was also noted as the recent strength in the market encouraged some hedges.
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Firmness in the Canadian dollar, which was up by about a quarter of a cent relative to its US counterpart, put some pressure on canola as well, said participants.
However, gains in CBOT soyoil and Malaysian palm oil did help temper the declines in canola. Ideas that canola was looking a little undervalued compared to the other vegetable oil markets were also supportive.
About 24,169 canola contracts were traded on Wednesday, which compares with Tuesday when 36,892 contracts changed hands. Spreading accounted for 12,738 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
