By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 10, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:34 CST Tuesday, hitting fresh contract lows for the third straight session.
“We just have no friends in here,” said a broker on the continued downtrend in canola.
Speculators liquidating long positions and moving to the short side were behind some of the weakness. Farmer selling was another feature weighing on values, according to participants.
The record large Canadian canola crop remains a bearish influence overhanging the market, while overnight losses in Malaysian palm oil and the firmer tone in the Canadian dollar were also behind some of the selling, said traders.
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However, gains in CBOT soybeans did provide some underlying support. Ideas that canola is looking oversold were also said to be tempering the declines.
Scale-down end user pricing was underpinning the futures as well, although a broker said canola was still searching for significant demand that would put a stop to the downward slide.
The USDA releases updated supply/demand data at 11:00 CST, which could provide some direction for canola depending on the reaction from the US soy complex.
About 30,000 canola contracts had traded as of 10:34 CST.
Milling wheat, durum, and barley futures were untraded on Tuesday after wheat saw some minor revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 10:34 CST:
