By Terryn Shiells, Commodity News Service Canada
January 9, 2014
WINNIPEG – ICE Futures Canada Canola contracts closed slightly lower on Thursday, hitting fresh contract lows once again. Activity was choppy, with advances seen earlier in the day being erased at the close.
The gains seen in the market during the day were seen as good selling opportunities, which caused prices to move lower at the close, said analysts.
The large Canadian canola supply situation and logistical issues within Canada’s grain handling system continued to overhang the market.
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The technical bias remains pointed lower for canola, which also weighed on the market.
However, oversold price sentiment and spillover support from the gains seen in the Chicago soy complex limited the declines.
The sharp downswing in the value of the Canadian dollar, which was hovering just above the 92 cents US mark Thursday afternoon, was also supportive.
About 36,640 canola contracts were traded on Thursday, which compares with Wednesday when 35,717 contracts changed hands. Spreading accounted for 29,572 of the trades.
Milling wheat, durum and barley prices were untraded.
Settlement prices are in Canadian dollars per metric ton.
