By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 11, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CST Tuesday, as steady farmer hedges, a lack of end user demand, and bearish technical signals all weighed on values.
“It’s just grinding lower in lackluster activity,” said a broker adding that the routine selling coming in from the country was only being met by scale-down commercial buying interest.
Canada’s record large crop and the ongoing logistics problems across Western Canada remained bearish for the futures as well. The broker said some industry officials were meeting to discuss the rail situation, but there was “no earth shattering news there.”
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Canola prices were off the contract lows hit in earlier activity, with a turn higher in CBOT soybeans providing some underlying support. “As the soybean complex pushes back up, it’s helping canola move off its lows,” said a broker.
Oversold price sentiment and ideas that canola is cheap compared to most other oilseeds provide some support as well, according to participants.
About 14,000 canola contracts had traded as of 10:45 CST, with inter-month spreading a feature as participants roll out of the nearby March contract.
Milling wheat, durum, and barley futures were untraded after seeing some price revisions following Monday’s close.
Prices in Canadian dollars per metric ton at 10:45 CST:
