By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 23, 2013
Winnipeg – ICE Canada canola contracts were lower Monday morning, testing major support to the downside in thin pre-holiday trading.
With Canadian markets closed for Christmas and Boxing Day later this week, many participants have already moved to the sidelines. Traders cautioned that the lack of liquidity could lead to some price swings over the course of the session.
Canada’s record large crop, bearish technical signals, the firmer Canadian dollar, and a softer tone in CBOT soybeans all accounted for some of the early weakness in canola, according to participants.
On the other side, canola is looking very cheap compared to other oilseeds and oversold price sentiment did provide some support.
About 3,800 canola contracts had traded as of 8:42 CST.
Milling wheat, durum, and barley futures were all untraded, although wheat saw some price adjustments following Friday’s close.
Prices in Canadian dollars per metric ton at 8:42 CST:
