By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 7, 2014
Winnipeg – ICE Canada canola contracts were weaker Friday morning, seeing a continuation of the speculative selling that came forward late Thursday.
Losses in CBOT soybeans contributed to the softer tone in canola, although soyoil was a little firmer.
Sharp gains in the Canadian dollar, which was up three quarters of a cent relative to its US counterpart, were also bearish for canola, according to participants.
Canada’s record large canola crop and the ongoing logistics issues across the Prairies continued to weigh on prices as well.
Dryness concerns for soybeans in some parts of South America helped temper the declines. Ideas that canola is oversold and cheap compared to other oilseeds, especially as crush margins remain at record highs, also provided some underlying support.
About 7,000 canola contracts had traded as of 8:42 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged after seeing some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 8:42 CST:
