By Phil Franz-Warkentin, Commodity News Service Canada
April 10, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:51 CDT, taking back some of the gains posted earlier in the week as speculators took profits and losses in the CBOT soy complex spilled over to weigh on prices.
After being active buyers earlier in the week, “some speculative money is cashing out,” said a canola broker accounting for the weaker tone.
Light farmer selling was also a factor, although the broker noted that farmers had sold into the recent rally and were now showing some reluctance on the way down.
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Canada’s burdensome supply situation remains a bearish influence overhanging the market as well, according to participants.
On the other side, light scale-down commercial demand was supportive. The weaker Canadian dollar and ideas that the nearby technical trend has shifted higher also provided some underlying support.
About 15,000 canola contracts had traded as of 10:51 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:51 CDT:
