| Winnipeg – ICE Canada canola futures were weaker Wednesday morning, seeing some follow-through selling on Tuesday’s sharp declines.
After posting limit-down losses in many months on Tuesday, traders said there was still more room to the downside in canola, as the political uncertainty in Libya and other nations continues to cause nervous speculators to back away from riskier assets, according to traders. ICE Futures Canada announced that the daily trading limit in canola is expanded to C$45 per ton on Wednesday, from C$30 per ton.
Overnight declines in Malaysian palm oil and European rapeseed were also bearish for canola, although CBOT soybeans were choppy overnight and could be poised for a correction higher.
The technical bias in canola has shifted to the downside, with any attempts at a recovery in canola likely seen as a selling opportunity, said an analyst.
The Canadian dollar was slightly weaker early in the day, providing some support for the canola market.
Scale down end user demand, oversold price sentiment, and ideas that prices will need to move higher in order to buy enough acres this spring also helped underpin the canola market.
About 5,500 canola contracts had traded as of 8:38 CST.
Western barley futures were untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:38 CST: |
