By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Sept. 22 – Canola contracts on the ICE Futures Canada platform were sharply lower, making new lows once again at 10:45 CDT Monday. Spillover from the declines in Chicago soybeans and soyoil contributed to the losses.
Speculative selling and a lack of spec interest on the buy side were also bearish. The speculative money that is normally there when commodities drop really low is no longer around, a Winnipeg-based broker said.
Forecasts calling for warm, dry weather in Western Canada this week further undermined values, as improved conditions will aid harvest activities.
Read Also
ICE Canola Midday: Looking to turn positive
By Glen Hallick Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were attempting to shed their losses…
The softness was also linked to weakness in Malaysian palm oil and European rapeseed futures, follow-through selling on recent declines and farmer selling.
However, weakness in the value of the Canadian dollar limited the declines, as it makes canola more attractive to crushers and exporters.
Oversold price sentiment, some uncertainty surrounding the size of Canada’s canola crop and light commercial buying at the lows were also supportive.
As of 10:45 CDT Monday, about 27,075 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
