By Terryn Shiells, Commodity News Service Canada
January 2, 2014
WINNIPEG – ICE Futures Canada Canola contracts were weaker on Thursday, as speculative and farmer selling returned along with the new tax year, analysts said.
Spillover pressure from the sharp declines seen in Chicago soybeans added to the bearish tone, as did weakness in soyoil, Malaysian palm oil and European rapeseed futures.
The long term technical bias continues to be bearish, which also helped to weigh on values.
Expectations of a large 2013/14 (Aug/Jul) Canadian canola carryout, due to huge supplies and problems within Canada’s grain handling system, continued to overhang prices.
However, the declines were limited by ideas that Canadian canola is still more attractively priced than some other oilseeds.
Activity remained on the quiet side. About 16,769 canola contracts were traded on Thursday, which compares with Tuesday when 12,875 contracts changed hands. The market was closed on Wednesday for New Year’s Day.
Milling wheat, durum and barley prices were untraded following price revisions after the close on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
