By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 13, 2013
Winnipeg – ICE Futures Canada canola contracts dropped lower on Friday, setting fresh contract lows once again and ending the week with losses of over thirty dollars per tonne in the front months.
Canola set new lows almost every day this week. While the market was looking oversold, the technical outlook remains bearish and speculative selling built on itself as prices dropped lower on Friday.
Farmer selling added to the declines, despite the widening basis levels in Western Canada, as some producers look to sell what they can before values drop farther still, said a broker.
Losses in CBOT soyoil and the firmer tone in the Canadian dollar contributed to the declines, although a late short-covering bounce in CBOT soybeans did provide some spillover support.
Scale-down commercial demand helped temper the losses as well. However, with the downturn showing no signs of letting-up, the end user demand was not very aggressive.
About 40,145 canola contracts were traded on Friday, which compares with Thursday when 32,114 contracts changed hands. Spreading accounted for 34,398 of the contracts traded.
Milling wheat, durum and barley futures were untraded, after the grains saw some price adjustments following Thursday’s close.
Settlement prices are in Canadian dollars per metric ton.