By Phil Franz-Warkentin, Commodity News Service Canada
April 4, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply weaker at 10:43 CDT Thursday, with speculative selling the feature as values dropped below nearby support.
“Technically, we’ve tipped the market over and we’re seeing long liquidation from everybody,” said a commission house broker. He said the move below the fifty-day moving average in the May contract triggered some speculative sell-stops, which added to the losses.
A weaker tone in the CBOT soy complex contributed to the declines in canola, according to the broker. A bird-flu outbreak in China and the continued South American harvest pressure were said to be behind some of the weakness in the soy market.
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The losses in canola were tempered by scale-down commercial buying, with both exporters and domestic crushers taking advantage of the downturn to book some coverage, said participants. Farmer selling was described as ‘non-existent’, providing some further support.
At 10:43 CDT, about 14,500 canola contracts had changed hands, with inter-month spreading a feature as participants continue to roll their positions out of the front-month.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:43 CDT:
