By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 13, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:42 CST Monday, hitting fresh contract lows once again as losses in CBOT soyoil and a lack of significant end user demand weighed on values. However, oversold price sentiment helped temper the declines, and canola was off its session lows.
A firmer tone in the Canadian dollar contributed to the declines in canola, as the currency recovered slightly after posting large losses relative to its US counterpart last week.
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Canada’s record large canola crop continued to overhang the market as well. While crush margins are historically strong, the domestic crush has been running behind expectations and logistics issues are expected to limit the export potential, said a broker. He said the resulting likelihood of a large carryout was a bearish influence on the market.
Gains in CBOT soybeans did provide some spillover support for canola, according to a broker. Ideas that canola is looking cheap compared to most other oilseeds also helped temper the declines.
About 7,000 canola contracts had traded as of 10:42 CST.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 10:42 CST:
