By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 23, 2013
Winnipeg – ICE Futures Canada canola contracts dropped lower on Monday, setting fresh contract lows once again as speculative selling continued to build on itself.
Speculative traders are already heavily short canola and remained on the sell side on Monday, said traders. Positioning against the US soy market was behind some of that selling.
Canada’s record large crop, bearish technical signals, the firmer Canadian dollar, and a softer tone in Chicago soybeans all added to the declines, according to participants.
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However, scale-down end user demand did provide some underlying support. Oversold price sentiment was also said to be tempering the losses.
With Canadian markets closed for Christmas and Boxing Day later this week, many participants have already moved to the sidelines. Traders cautioned that the lack of liquidity could lead to some price swings on Tuesday.
About 30,023 canola contracts were traded on Monday, which compares with Friday when 30,753 contracts changed hands. Spreading accounted for 25,666 of the contracts traded.
Milling wheat, durum and barley futures were untraded, after the grains saw some price adjustments following Friday’s close.
Settlement prices are in Canadian dollars per metric ton.
