By Terryn Shiells, Commodity News Service Canada
WINNIPEG, March 21 – Canola contracts on the ICE Futures Canada platform were down sharply at 10:47 CDT Friday, as optimism that logistics problems in Western Canada were improving faded, analysts said.
Workers at CN rail rejected a recent contract proposal, sparking concerns about possible strike action, and the truckers at the port of Vancouver are still on strike. Optimism that logistics will improve is also fading as thick ice is causing problems on waterways in eastern Canada, and another cold snap is in the forecast for Western Canada next week, brokers said.
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The Canadian dollar was relatively steady on Wednesday. The loonie closed at US$0.7250 or US$1=C$1.3794, compared to US$0.7252 or US$1=C$1.3789…
Some of the selling in the market was also linked to follow-through on Thursday’s lower close, speculators exiting positions and farmer hedges.
Spillover pressure from the losses seen in Chicago soybean futures added to the bearish tone, as did the upswing in the value of the Canadian dollar.
However, ideas that the recent declines are overdone could provide some support and see prices come off their lows ahead of the weekend, said traders.
As of 10:47 CDT Friday, about 18,800 contracts had traded.
Milling wheat, barley and durum were untraded following price revisions after the close on Thursday.
Prices in Canadian dollars per metric ton at 10:47 CDT:
