By Terryn Shiells, Commodity News Service Canada
December 13, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Friday morning, hitting fresh contract lows once again. Technical based and follow-through selling after Thursday’s sharp losses weighed on prices, analysts said.
Spillover pressure from the declines seen in the Chicago soy complex, Malaysian palm oil and European rapeseed futures added to the bearish tone.
The large Canadian canola crop and expectations of a larger carryout into next year also continued to overhang the market.
However, sentiment that the market is oversold, and ideas that canola is undervalued compared to other oilseeds, limited the losses.
Steady demand from domestic crushers, as margins are favourable for them, also provided some support.
As of 8:45 CST Friday, about 6,775 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions by the Exchange after the close on Thursday.
Prices in Canadian dollars per metric ton at 8:45 CST:
