By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 13, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply weaker at 10:55 CST Thursday, hitting fresh contract lows for the fourth straight session as speculators continue to add to their large short positions.
The nearby March contract fell below the psychological C$400 per tonne level in early activity, but did manage to edge back above that chart point as the day progressed.
The declines were largely technical in nature, with speculators said to be selling canola while buying other commodities, such as CBOT soybeans which were firmer on Thursday.
The ongoing logistics issues across Western Canada added to the weaker tone in canola, with end users showing reluctance to make purchases despite the cheap prices.
About 38,000 canola contracts had traded as of 10:55 CST, with inter-month spreading a feature.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:55 CST:
