By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 24, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:32 CST Tuesday, hitting fresh contract lows in thin pre-holiday trade.
ICE Canada will close early at 12:00 CST today. Canadian markets will remain closed Wednesday and Thursday for Christmas and Boxing Day, and participants are expected to be squaring positions and moving to the sidelines ahead of the holiday break.
Canada’s record large crop, bearish technical signals, and a softer tone in CBOT soyoil all accounted for some of the weakness in canola, according to participants who said much of the selling was tied to speculators adding to their short positions.
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On the other side, canola is looking very cheap compared to other oilseeds. Oversold price sentiment and scale-down end user demand did provide some support. Gains in CBOT soybeans helped temper the declines in canola as well.
About 8,000 canola contracts had traded as of 10:32 CST.
Milling wheat, durum, and barley futures were untraded on Tuesday after the grains saw some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 10:32 CST:
