By Dave Sims, Commodity News Service Canada
WINNIPEG, February 9 – ICE Canada canola contracts were sharply lower Tuesday morning, as the nearby contract sank below key technical support levels, prompting a rash of selling. The most-active March contract traded below C$463 per tonne which caused some sell stops to be uncovered.
The Canadian dollar was higher relative to its US counterpart, which cut into domestic crush margins and made canola a less enticing “buy” for overseas merchants.
Commercial demand is weakening as South America’s large soybean crop is poised to enter the market, according to a report. Recent rains have helped alleviate some of the concerns over dryness in Argentina too.
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European rapeseed futures and crude oil were both weaker which also undermined the market.
However, Canola’s downward action has left it poised to bounce higher, according to a report.
Ideas the losses were overdone have already provided some support as investors went bargain hunting.
About 8,000 canola contracts had traded as of 8:55 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:55 CST:
