By Terryn Shiells, Commodity News Service Canada
January 8, 2014
WINNIPEG – Canola contracts on the ICE Futures Canada platform were moving the downside at 10:37 CST Wednesday, hitting fresh contract lows in the process.
Some of the losses were linked to spillover pressure from the declines seen in the Chicago soybean complex. Overnight weakness in Malaysian palm oil and European rapeseed futures was also bearish.
A pickup in farmer selling in the futures market, as prices are more attractive than in the cash market, further undermined values, brokers said.
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The large Canadian canola crop, logistical issues within Canada’s grain handling system and a bearish technical bias continued to overhang the market.
However, the sharply weaker Canadian dollar, which was down another third of a cent against the US dollar on Wednesday, limited the declines.
Continued ideas that canola is undervalued compared to other oilseeds and strong crush margins were also supportive.
As of 10:37 CST Wednesday, about 13,640 contracts had traded.
Milling wheat, barley and durum were untraded following slight price revisions after the close on Tuesday.
Prices in Canadian dollars per metric ton at 10:37 CST:
