Published: October 1, 2013
By Phil Franz-Warkentin, Commodity News Service Canada
October 1, 2013
Winnipeg – ICE Futures Canada canola contracts were down on Tuesday, testing nearby support as losses in the CBOT soy complex spilled over to weigh on prices.
Expectations for a record large Canadian canola crop added to the softer tone, with some trade guesses on the size of the crop now topping 17 million tonnes ahead of Friday’s Statistics Canada production report.
Bearish technical signals weighed on values as well, although the November contract managed to settle above its nearby lows. Speculators are already holding large short positions in canola and were showing a reluctance to add to those positions, according to a broker.
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Rain-related harvest delays in some part of Western Canada provided some underlying support. Farmers were also said to be showing some reluctance to sell at current levels.
About 23,047 canola contracts were traded on Tuesday, which compares with Monday when 27,914 contracts changed hands. Spreading accounted for 14,338 of the contracts traded.
Milling wheat, durum and barley futures were untraded after seeing some price adjustments following Monday’s close.
Settlement prices are in Canadian dollars per metric ton.
