By Phil Franz-Warkentin, Commodity News Service Canada
April 21, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply weaker at 10:44 CDT Monday, taking some direction from the selloff seen in the US grains and oilseeds.
Wheat futures led to the downside in the US, pulling the other grains and oilseeds – including canola – lower as well. Speculators were the noted sellers in the Canadian market, liquidating long positions, according to a Winnipeg-based broker.
Some sell-stops were hit on the way down, as canola prices moved below nearby support.
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The broad selling pressure was only being met with scale-down end user buying interest, according to the broker. However, he noted that there was still enough uncertainty over spring seeding to keep some weather premiums in the futures.
Statistics Canada releases its prospective plantings report on April 24, and early trade guesses are generally calling for an increase of one million acres in canola area on the year, from the 19.9 million seeded in 2013.
About 18,000 canola contracts had traded as of 10:44 CDT, with intermonth spreading a feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing some price revisions following Thursday’s close. Markets were closed Friday for Good Friday.
Prices in Canadian dollars per metric ton at 10:44 CDT:
