| By Phil Franz-Warkentin, Commodity News Service Canada |
| Dec. 18, 2012 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply lower at 11:01 CST Tuesday, with year-end speculative long liquidation behind much of the weakness. Losses in CBOT soybeans, brought on by improving South American crop conditions and export cancellations from China, provided the catalyst for some of the selling pressure in canola, according to traders. Malaysian palm oil and European rapeseed futures were also down in overnight activity. A move below nearby chart support added to the weaker tone in canola, said participants. A lack of significant farmer selling, as producers appear content to wait until the New Year to make more sales, did help limit the losses. Bargain hunting from end users was also supportive. At 11:01 CST, about 9,000 canola contracts had changed hands with intermonth spreading accounting for about 7,000 of the contracts traded. Milling wheat, durum, and barley futures were untraded and unchanged. |
