By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 13, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:52 CST Friday, setting fresh contract lows once again as speculators and farmers were both on the sell side.
“Canola just can’t catch a break,” said a Winnipeg-based broker on the continued slide in the market. Losses in CBOT soybeans and other outside oilseed markets, including Malaysian palm oil, contributed to the softer tone in canola.
Basis levels have deteriorated in Western Canada, but farmers were still noted sellers as panic selling in the country-side was said to be building on itself.
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Bearish technical signals also weighed on prices, with speculators adding to short positions, according to a broker. “We’re oversold, but when you’re in a downtrend that’s not as important,” he added.
Scale-down end user demand did provide some underlying support, but with the declines showing no signs of slowing down the end user demand was not very aggressive.
About 18,000 canola contracts had traded as of 10:52 CST.
Milling wheat, durum, and barley futures were untraded on Friday after the grains saw some price revisions following Thursday’s close.
Prices in Canadian dollars per metric ton at 10:52 CST:
