By Phil Franz-Warkentin, Commodity News Service Canada
November 3, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were posting small losses in most months at midday Monday, seeing a modest correction to start the week.
Declines in the CBOT soy complex contributed to the softer tone in canola, although a broker noted that canola was lagging beans to the downside as the Canadian market had also not climbed to the same extent as beans during last week’s rally.
Solid commercial demand did help temper the profit-taking declines in canola, according to a broker. He said the exporters and domestic crushers were “still dangling the carrot” of good cash bids in front of producers in an effort to keep producers from shutting their bins for the winter.
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The recent strength of the market has encouraged some farmer selling, but many producers are also starting to feel more bullish, said the broker. As a result, he expected nearby prices would remain strong as the commercials will need to keep offering good prices to encourage farmer sales.
About 14,000 canola contracts had traded as of 11:04 CST.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 11:04 CST:
