By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 14, 2014
Winnipeg – ICE Futures Canada canola contracts were weaker on Tuesday, continuing their downward slide of the past two months as the fundamentals and technicals both remain bearish for the commodity.
While oversold price sentiment, a weaker Canadian dollar, and gains in CBOT soybeans were all said to be somewhat supportive, canola was unable to hold onto any early gains and slipped to fresh contract lows by the close.
The charts are still pointed lower overall, making the early gains a good selling opportunity, according to participants.
Farmer hedges contributed to the losses. While basis levels for producers across Western Canada are poor, other crop options, such as wheat, are even worse for those producers who need to sell something at this time, said a broker.
About 35,796 canola contracts were traded on Tuesday, which compares with Monday when 14,906 contracts changed hands. Spreading accounted for 27,926 of the contracts traded.
Milling wheat, durum and barley futures were untraded, although prices were revised following the close.
Settlement prices are in Canadian dollars per metric ton.
