By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 24, 2013
Winnipeg – ICE Canada canola contracts were down Tuesday morning, hitting fresh contract lows once again as speculative selling continued to weigh on prices.
Reduced liquidity, with many participants already moving to the sidelines ahead of the Christmas break, likely exaggerated the move, according to participants.
ICE Canada will close early at 12:00 CST today. Canadian markets will remain closed Wednesday and Thursday for Christmas and Boxing Day, and participants are expected to be squaring positions and moving to the sidelines ahead of the holiday break.
Canada’s record large crop, bearish technical signals, and a softer tone in CBOT soyoil all accounted for some of the early weakness in canola, according to participants.
On the other side, canola is looking very cheap compared to other oilseeds and oversold price sentiment did provide some support.
About 3,000 canola contracts had traded as of 8:41 CST.
Milling wheat, durum, and barley futures were all untraded, although wheat saw some price adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 8:41 CST:
