By Dave Sims, Commodity News Service Canada
Winnipeg, November 26 – THE ICE Futures Canada canola market finished lower Thursday on speculative trading amid thin volumes.
Canola was higher for much of the morning, however, once the Canadian dollar started making positive gains the market started to fall lower and the selling built on itself.
The US market was closed today for American Thanksgiving which left canola very vulnerable to domestic issues amid low-volume trading. The lack of liquidity also exaggerated the losses, a trader said.
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South America looks to have another massive crop of soybeans this year which cast a bearish tone, while many traders expect the next report from Statistics Canada to reveal a larger canola crop than previously reported.
However, sharp gains in European rapeseed futures and a modest rise in Malaysian palm oil limited the losses, according to an analyst.
“European rapeseed was testing resistance. Palm oil has been trending lower the past two months but was higher overnight,” he explained.
The technical bias is leaning to the upside.
Around 7,257 canola contracts were traded on Thursday, which compares with Wednesday when around 20,859 contracts changed hands. Spreading accounted for 5,306 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric ton.
