By Terryn Shiells, Commodity News Service Canada
Winnipeg, Feb. 13 – Canola contracts on the ICE Futures Canada platform were sharply lower Thursday morning, falling below the psychological support level of C$400 per tonne in the March contract.
Much of the weakness was linked to speculators who continued to follow-through on the selling that took prices to fresh contract lows over the past two days.
A bearish technical bias also encouraged some of the selling that took values to lower ground, analysts said.
A lack of fresh end user demand paired with steady farmer selling was responsible for some of the price softness as well.
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Continued logistics problems moving Canada’s large canola supplies out of Western Canada added to the bearish tone.
However, spillover support from the gains seen in Chicago soybeans and soyoil helped to temper the declines.
Some support also came from oversold price sentiment and the downswing in the value of the Canadian dollar.
As of 8:41 CST Thursday, about 11,000 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions to wheat after the close on Wednesday.
Prices in Canadian dollars per metric ton at 8:41 CST:
