By Phil Franz-Warkentin, Commodity News Service Canada
September 18, 2014
Winnipeg – Canola contracts on the ICE Futures Canada were weaker on Thursday, hitting fresh contract lows as declines in the CBOT soy complex spilled over to weigh on values.
The most active November contract dropped below its previous low of C$409.00 per tonne in early activity, which triggered additional sell-stops.
In addition to the record large US soybean crop overhanging the oilseeds in general, the declines in canola were also tied to mounting Canadian harvest pressure and increased farmer hedges, according to participants.
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A firmer tone in the Canadian dollar, which was up by over half a cent relative to its US counterpart, contributed to the declines in canola.
Scale down end user demand did provide some underlying support. There is also still enough uncertainty over the size and quality of the canola crop to keep some weather premiums in the futures.
About 16,000 canola contracts had traded as of 10:47 CDT, with inter-month spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:47 CDT:
