By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 12, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:49 CST Wednesday, hitting fresh contract lows as speculative selling weighed on values.
March canola was trading at the weakest level for the front month contract since June 2010, with speculators adding to already large short positions behind much of the selling pressure.
While losses in CBOT soybeans did put some spillover pressure on canola, soyoil was a little firmer and canola was losing ground to the soy complex overall. A broker said the widening spread between the two commodities was tied to speculators who were long beans and short canola.
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Steady farmer hedges together with the ongoing lack of end user demand added to the declines in canola. While canola continues to look very cheap compared to other oilseeds, the ongoing logistics issues across the Prairies are limiting the ability of commercial buyers to capitalize on the low prices, said a broker.
About 22,000 canola contracts had traded as of 10:49 CST, with inter-month spreading a feature.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:49 CST:
