By Phil Franz-Warkentin, Commodity News Service Canada
October 28, 2013
Winnipeg – ICE Futures Canada canola contracts were weaker at Monday’s close, as a selloff in CBOT soybeans spilled over to weigh on prices. Bearish technical signals contributed to the declines and canola settled at its session lows.
The advancing US soybean harvest and reports of good yields helped spark the selling in soybeans that spilled into the Canadian market, according to participants.
While Canada’s harvest is finished and farmers were reluctant sellers on the way down, Canada’s record large canola crop does remain a bearish influence overhanging the market, said traders.
Solid end user demand provided some scale down support, with canola still looking favourably priced to both exporters and domestic crushers, said participants.
About 33,657 canola contracts were traded on Monday, which compares with Friday when 23,901 contracts changed hands. Spreading accounted for 21,978 of the contracts traded.
Milling wheat, durum and barley futures were untraded after wheat saw some price adjustments following Friday’s close.
Settlement prices are in Canadian dollars per metric ton.
