By Phil Franz-Warkentin, Commodity News Service Canada
November 13, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CST Wednesday, taking some direction from the softer tone in CBOT soybeans.
The January contract settled at its highest level in over two weeks on Tuesday and was due for a correction from a technical standpoint, according to traders. With the record large crop grown in Western Canada this year, the recent strength in the market was also said to be encouraging some farmer selling.
Firmness in the Canadian dollar, which was up by about a quarter cent relative to its US counterpart, put some pressure on canola as well.
However, gains in CBOT soyoil and Malaysian palm oil did help temper the declines in canola, according to participants who said canola was starting to look a little undervalued compared to the other vegetable oil markets.
About 9,000 canola contracts had traded as of 10:40 CST.
Milling wheat, durum, and barley futures were untraded on Wednesday.
Prices in Canadian dollars per metric ton at 10:40 CST:
