By Phil Franz-Warkentin, Commodity News Service Canada
March 17, 2014
Winnipeg – ICE Canada canola contracts were posting small losses Monday morning, as declines in most outside oilseed markets spilled over to weigh on prices.
Malaysian palm oil, European rapeseed, and CBOT soybeans were all down in overnight activity, which put some pressure on canola, according to participants. Easing concerns over possible disruptions to grain movement in the Black Sea, following the vote in Crimea over the weekend, was said to be behind some of the weakness in the grain and oilseed markets in general.
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The recent strength in the canola market has also uncovered some more farmer selling, and the resulting hedge pressure contributed to the softer tone, said traders.
The nearby technical bias has shifted higher for canola, which was making any declines a good buying opportunity from a chart standpoint, according to analysts. Talk that the ongoing logistics issues slowing movement across Western Canada were starting to show signs of improvement helped underpin the futures as well, said traders.
About 2,500 canola contracts had traded as of 8:42 CST.
Milling wheat, durum, and barley futures were all untraded after wheat saw some minor price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 8:42 CST:
