|By Phil Franz-Warkentin, Commodity News Service Canada|
|Dec. 19, 2012|
|Winnipeg – ICE Futures Canada canola contracts closed sharply lower for the third consecutive session on Wednesday, as heavy losses in the CBOT soy complex spilled over to weigh on prices.
Speculative long liquidation was a feature, as the selling built on itself and prices dropped to their lowest levels in a month.
Recent activity has shifted the technical bias to the downside in canola, and traders exiting the market ahead of the New Year were behind much of the selling pressure, according to participants.
The relatively favourable prospects for soybean crops in South America were overhanging the oilseed markets as well, including canola, said a broker.
However, scale-down exporter and domestic crusher pricing, along with a lack of significant farmer selling, did help limit the losses. Concerns over tightening Canadian supplies, and the need to ration demand going forward, remained somewhat supportive as well.
About 26,280 canola contracts were traded on Wednesday, which compares with Tuesday when 14,141 contracts changed hands. Spreading accounted for about 20,618 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton