By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 12, 2013
Winnipeg – ICE Futures Canada canola contracts settled sharply lower on Thursday, hitting fresh contract lows for the third time this week.
Losses in CBOT soybeans and soyoil contributed to the declines in canola, according to participants who noted that speculative long liquidation, panic farmer selling, and only scale-down buying interest on the other side kept the path of least resistance pointing down.
Canada’s record large crop, and the logistical issues moving it, remained a bearish influence overhanging the market as well, although canola was said to be looking very cheap compared to other oilseeds.
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Strong crush margins were keeping some scale-down domestic processor demand in the market, according to traders. A weaker tone in the Canadian dollar, which was down by about half a cent relative to its US counterpart, was also slightly supportive for canola.
About 32,114 canola contracts were traded on Thursday, which compares with Wednesday when 44,797 contracts changed hands. Spreading accounted for 27,532 of the contracts traded.
Milling wheat, durum and barley futures were untraded, after wheat and durum saw some price adjustments following Wednesday’s close.
Settlement prices are in Canadian dollars per metric ton.
