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ICE Canola Down, Testing Chart Support

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Published: December 12, 2013

By Phil Franz-Warkentin, Commodity News Service Canada

Dec. 12, 2013

Winnipeg – Canola contracts on the ICE Futures Canada platform were down at 10:51 CST Thursday, trading just above nearby contract lows as losses in the CBOT soy complex spilled over to weigh on prices.

Speculators liquidating long positions ahead of the New Year accounted for much of the selling in both the US soy market and canola, said a broker.

Canada’s record large canola crop remains a bearish influence overhanging the market as well, although the broker noted that canola was looking very cheap compared to other oilseeds.

Crush margins are very strong, which was keeping some scale-down domestic processor demand in the market. A weaker tone in the Canadian dollar was also slightly supportive for canola.

About 19,000 canola contracts had traded as of 10:51 CST.

Milling wheat, durum, and barley futures were untraded on Thursday after wheat and durum saw some revisions following Wednesday’s close.

Prices in Canadian dollars per metric ton at 10:51 CST:

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