By Phil Franz-Warkentin, Commodity News Service Canada
Dec. 9, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:47 CST Monday, setting fresh contract lows as speculative long liquidation and increased farmer selling weighed on prices.
Canola initially saw a corrective bounce higher in overnight activity, but failed to hold onto those gains. Speculators were noted sellers liquidating long positions and adding new shorts, according to a broker.
‘Panic selling’ from growers was also a factor as prices continue to move lower.
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The record large Canadian canola crop remains a bearish influence overhanging the market, while losses in CBOT soyoil were also behind some of the selling, according to participants.
However, CBOT soybeans were higher and canola was looking oversold compared to most outside oilseed markets.
Scale-down end user bargain hunting and continued weakness in the Canadian dollar also provided some support.
About 30,000 canola contracts had traded as of 10:47 CST.
Milling wheat, durum, and barley futures were untraded on Monday after wheat saw some minor revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 10:47 CST:
