By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 23, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:58 CST Monday, setting fresh contract lows once again as speculators were adding to short positions.
Speculative traders are already heavily short canola and remained on the sell side on Monday, according to a broker who said positioning against the US soy market was behind some of that selling.
Canada’s record large crop, bearish technical signals, the firmer Canadian dollar, and a softer tone in CBOT soybeans all added to the weaker tone, said the broker.
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However, canola is looking very cheap compared to other oilseeds and scale-down end user demand was supportive. Oversold price sentiment was also said to be tempering the declines.
With Canadian markets closed for Christmas and Boxing Day later this week, many participants have already moved to the sidelines. Traders cautioned that the lack of liquidity could lead to some price swings over the next two days.
About 17,000 canola contracts had traded as of 10:58 CST.
Milling wheat, durum, and barley futures were untraded on Monday after the grains saw some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 10:58 CST:
