By Terryn Shiells, Commodity News Service Canada
WINNIPEG, March 20 – Canola contracts on the ICE Futures Canada platform were down sharply at 10:45 CDT Thursday, undermined by selling by speculative fund accounts.
The funds were covering shorts and adding new positions recently, but were said to be taking profits and possibly setting the market up for another downturn, brokers said.
Spillover pressure from the sharply weaker Chicago soyoil futures also contributed to some of the price softness.
The large Canadian canola supply situation and a recent pickup in farmer selling were also responsible fro some of the declines.
However, the sharp downswing in the value of the Canadian dollar, which dropped below 89 cents US on Thursday, tempered the declines.
Steady commercial demand, as logistics problems in Western Canada show signs of improvement, also provided some support.
As of 10:45 CDT Thursday, about 22,800 contracts had traded.
Milling wheat, barley and durum were untraded following price revisions after the close on Wednesday.
Prices in Canadian dollars per metric ton at 10:45 CDT:
