By Phil Franz-Warkentin, Commodity News Service Canada
April 23, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker 10:51 CDT Wednesday, with chart-based selling a feature as prices moved below nearby support.
After posting large losses earlier this week the technical bias has shifted lower for canola, according to a broker. He said fund traders were some of the noted sellers, with some stops hit on the way down.
Positioning ahead of Thursday’s Statistics Canada planting intentions report was also behind some of the weakness, with market participants generally anticipating a 5% to 10% increase in canola acreage compared to last year, said the broker.
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Canola does remain cheap compared to CBOT soybeans, and oversold price sentiment did provide some underlying support. The need to keep some weather premiums in place ahead of spring seeding helped temper the declines as well.
About 21,000 canola contracts had traded as of 10:51 CDT, with intermonth spreading a feature as traders continue to exit the nearby May contract.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Tuesday’s close.
Prices in Canadian dollars per metric ton at 10:51 CDT:
