By Phil Franz-Warkentin, Commodity News Service Canada
December 3, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were down at midday Wednesday, taking some direction from the losses in CBOT soybeans.
Bearish technical signals contributed to the declines in canola, with fund selling a feature as prices moved below nearby support levels on Tuesday.
A firmer tone in the Canadian dollar was another bearish factor overhanging the canola market, according to traders.
However, CBOT soyoil was posting gains and domestic crush margins were showing some improvement overall. As a result, some domestic crusher buying interest was helping temper the declines, said traders.
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A continued lack of farmer selling, with producers generally thought to be content to wait on the sidelines until the New Year, provided some underlying support for canola as well.
Statistics Canada releases updated production estimates on Thursday, December 4, and positioning ahead of that report was keeping some caution in the Canadian market. Traders are generally anticipating an upward revision to the canola production number, from the 14.1 million tonnes forecasted in October, but the extent of that adjustment remains to be seen.
About 11,000 canola contracts had traded as of 10:56 CST.
Milling wheat, durum, and barley were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:56 CST:
