By Phil Franz-Warkentin, Commodity News Service Canada
Jan. 2, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:37 CST Thursday, taking some direction from the softer tone in CBOT soybeans.
Speculators were back on the sell side to start the New Year, according to a broker who noted that the overall technical trend remains pointed lower despite the short-covering bounce on the last two trading days of 2013.
Farmer hedges added to the softer tone, with the new tax year uncovering some fresh producer selling, according to a broker.
End users were only interest on a scale down basis, and the lack of significant demand contributed to the declines, said traders. However, canola does remain very cheap compared to other oilseeds, which provided some underlying support.
About 10,000 canola contracts had traded as of 10:37 CST, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Tuesday’s close. The market was closed Wednesday for New Year’s Day.
Prices in Canadian dollars per metric ton at 10:37 CST:
