By Dave Sims, Commodity News Service Canada
WINNIPEG, December 31 – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CST Wednesday, following declines seen in the US soy complex. However, speculative buying limited the losses.
“Some traders are long on the front months and short on the back months, and they’re just pushing spreads as much as they can get away with,” said a trader.
He noted the most-active March contract was holding up quite well as basis levels in Canada had widened out dramatically.
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“You can’t even deliver a load of canola to most facilities, they don’t want it,” he said, adding most facilities were already booking for February.
Malaysian palm oil and European rapeseed futures were both lower which pressured the market.
The Canadian dollar was slightly higher against its American counterpart which was bearish, as it made canola less attractive to buyers on the international market.
Improved prospects for the soybean crop in South America, along with the US crop, was bearish for values.
However, commercial interest was steady which helped underpin the market.
As well, ongoing concerns about possible disruptions to palm oil production due to flooding in Malaysia, were supportive.
Around 7,100 contracts had traded as of 10:40 CST, Wednesday.
Milling wheat, durum and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CST:
