By Phil Franz-Warkentin, Commodity News Service Canada
September 16, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were lower at 10:40 CDT Monday, as harvest pressure, the firm Canadian dollar, and declines in CBOT soybeans all weighed on values.
Improved US moisture conditions contributed to the sharp losses seen in CBOT soybeans, according to traders. With no support coming from the soy complex, the path of least resistance was said to be pointing lower for canola.
In addition to the speculative long liquidation, farmer hedges were also weighing on canola as the Canadian harvest continues to move forward.
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Expectations for a record large canola crop remained a bearish influence as well.
Reports of light frost in parts of Manitoba and Saskatchewan over the weekend were a little supportive, said a broker. However, he said the temperatures weren’t cold enough to cause any serious damage and noted that forecasts look favourable over the next week.
Chart support was holding to the downside at C$492 per tonne in the November contract. A break below that point would likely trigger additional speculative selling, according to a broker.
About 9,800 canola contracts had traded as of 10:40 CDT.
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 10:40 CDT:
