By Phil Franz-Warkentin, Commodity News Service Canada
September 20, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:51 CDT Friday, seeing some spillover selling from the softer tone in the CBOT soy complex. Harvest pressure and bearish chart signals contributed to the declines.
Western Canadian farmers continue to make good progress bringing in this year’s record large canola crop, and the increased availability of new crop supplies was said to be weighing on values.
The CBOT soy complex, Malaysian palm oil, and European rapeseed futures were all weaker on Friday, which added to the softer tone in canola, according to participants.
Bearish technical signals contributed to the declines, with some speculative sell-stops hit as canola traded at its lowest levels of the past month.
However, solid exporter and domestic crusher demand underneath the market did provide some support, as canola remains attractively priced at current levels. A softer tone in the Canadian dollar was also supportive.
About 13,000 canola contracts had traded as of 10:51 CDT.
Milling wheat, durum, and barley futures were untraded on Friday.
