By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 9, 2013
Winnipeg – ICE Futures Canada canola contracts dropped to fresh lows on Monday, seeing some follow-through speculative selling on Friday’s move below major support.
Canola initially saw a corrective bounce higher in overnight activity, but failed to hold onto those gains and instead turned back down to set fresh contract lows. Speculators were noted sellers liquidating long positions and adding new shorts, according to a broker. Farmer selling was said to have added to the losses.
The record large Canadian canola crop remains a bearish influence overhanging the market, while losses in CBOT soyoil were also behind some of the selling, said traders.
However, CBOT soybeans themselves were higher, which provided some support. Oversold price-sentiment, scale-down end user bargain hunting, and continued weakness in the Canadian dollar also helped temper the declines, according to participants.
About 46,125 canola contracts were traded on Monday, which compares with Friday when 31,305 contracts changed hands.
Milling wheat, durum and barley futures were untraded.
