By Phil Franz-Warkentin, Commodity News Service Canada
March 21, 2014
Winnipeg – ICE Canada canola contracts were weaker Friday morning, seeing some follow-through selling after dropping sharply on Thursday.
The nearby chart signals have turned bearish, which contributed to the speculative selling pressure, according to participants. Farmer hedges were also said to be picking up, although the downturn was likely causing producers to move back to the sidelines.
CBOT soyoil, Malaysian palm oil, and European rapeseed futures were also lower in overnight activity, which contributed to the softer tone in canola. Firmness in the Canadian dollar was another bearish price influence.
Commercial pricing at the lows provided some underlying support, according to participants. Ideas that the sell-off was overdone and that canola could see a corrective bounce ahead of the weekend were also supportive.
About 4,200 canola contracts had traded as of 8:54 CDT.
Milling wheat, durum, and barley futures were all untraded after seeing some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 8:54 CDT:
