By Phil Franz-Warkentin, Commodity News Service Canada
September 4, 2013
Winnipeg – ICE Futures Canada canola contracts were lower on Wednesday, dropping in sympathy with CBOT soybeans and soyoil.
Bearish technical signals and improving weather forecasts accounted for much of the speculative selling in soybeans that spilled into the Canadian market as well, according to participants.
Expectations for a record large canola crop contributed to the losses in canola, as the looming harvest has caused exporters and domestic crushers to back away from the market and widen their basis levels, said traders.
However, the Canadian canola harvest is still only in its very early stages and the possibility of any weather related problems over the next month did help temper the declines. A lack of significant farmer selling was also said to be somewhat supportive.
About 18,389 canola contracts were traded on Wednesday, which compares with Tuesday when 23,432 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged.
Settlement prices are in Canadian dollars per metric ton.
