By Phil Franz-Warkentin, Commodity News Service Canada
September 4, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at midday Thursday, dropping below nearby support to hit fresh contract lows as losses in CBOT soybeans spilled over to weigh on prices.
The November canola contract fell below support at C$415 per tonne in early activity, which triggered some additional chart-based speculative selling. A broker said buyers were also not very aggressive on the other side as prices dropped.
Recent strength in the Canadian dollar contributed to the declines in canola, according to the broker.
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While the losses in CBOT soybeans were behind much of the spillover weakness in canola, gains in soyoil did help temper the Canadian declines to some extent.
Positioning ahead of Friday’s Statistics Canada ending stocks report kept some caution in the market as well. In addition, the persistent wet weather across much of Western Canada was also leading to concerns over harvest delays and quality downgrades in some areas.
About 17,000 canola contracts had traded as of 10:50 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
