ICE canola declines with investor selling

By Jade Markus, Commodity News Service Canada

WINNIPEG, January 3 – ICE Canada canola contracts were weaker at midday on Tuesday, pressured by speculative long-liquidation.

“Without this technical fund-selling, long-liquidation, we’d be seeing either lower volumes or higher prices, but it is what it is,” said one Winnipeg-based trader.

Investors pushed the market higher overnight and prices moved to C$506.40 a tonne.

“And then it kind of failed,” he said. “We couldn’t keep it going and fell back here.”

He expects support around C$500 to C$501 a tonne to hold in the short-term.

A slightly firmer Canadian dollar added to the downside.

About 10,587 contracts had traded as of 10:41 CST.

Milling wheat, durum and barley futures were all untraded and unchanged.

Prices in Canadian dollars per metric tonne at 10:41 CST:

explore

Stories from our other publications