By Phil Franz-Warkentin, Commodity News Service Canada
November 4, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were down at midday Tuesday, as losses in the Chicago soy complex spilled over to weigh on values.
Chart-based selling contributed to the declines in canola, with Monday’s turn lower shifting the technical bias back to the downside, according to an analyst. Fund traders were active covering short positions over the past week, but were now looking less aggressive on the buy side once again.
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Farmer selling was also backing away, which did provide some underlying support. “Farmers are sitting with their hands in their pockets,” said a broker noting that producers were content to sit and wait for better prices now that the harvest is complete and their nearby cash-flow needs are met.
Good end user demand, with China reported to be buying more Canadian canola, helped limit the losses in canola as well, according to participants. The Canadian dollar was also weaker at midsession.
About 11,000 canola contracts had traded as of 10:53 CST.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:53 CST:
