By Phil Franz-Warkentin, Commodity News Service Canada
November 5, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were steady to slightly weaker at midday Wednesday, with losses in the CBOT soy complex behind some of the weakness.
Speculators were said to be back on the sell side, rebuilding their net short position, according to participants. The record large US soybean crop and favourable weather conditions for soybeans in South America were both bearish for the oilseeds in general.
Malaysian palm oil and European rapeseed futures were also down in overnight activity.
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However, the losses in canola were tempered by solid end user demand and a lack of significant farmer selling. The market is currently trading at an inverse, with the nearby months ahead of the more deferred positions, which a trader linked to the fact that exporters and domestic crushers were being forced to pay up in order to encourage continued farmer deliveries.
Recent weakness in the Canadian dollar, which has dropped sharply relative to its US counterpart over the past few days, was also supportive for canola, according to participants.
About 10,000 canola contracts had traded as of 10:53 CST.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:53 CST:
