By Phil Franz-Warkentin, Commodity News Service Canada
September 19, 2014
Winnipeg – Canola contracts on the ICE Futures
Canada were down sharply on Friday, setting fresh lows once again as
speculative selling built on itself.
The most active November contract fell below the key C$400 per
tonne level, which triggered additional sell-stops. Speculators
featured sellers, both liquidating previous long positions and
creating new shorts.
Losses in the Chicago soy complex accounted for some of the
spillover selling pressure in canola, as the US market braces itself
for a record large soybean crop.
While the Canadian canola crop won’t be setting any records of
its own this year, the harvest is starting to move forward which
weighed on values as well.
However, a lack of significant farmer selling did help temper
the declines. Scale-down end user demand was also coming forward.
Over 40,000 canola contracts had traded as of 10:47 CDT, with
inter-month spreading a feature.
Milling wheat, durum, and barley futures were untraded, after
seeing some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 10:47 CDT:
