ICE Canola Hits New Contract Low
By Dave Sims, Commodity News Service Canada
WINNIPEG, March 2 – Canola contracts on the ICE Futures Canada platform were lower at 10:45 CST, due to heavy speculative selling. The May contract momentarily crashed through its nearby major level of C$440 per tonne to hit new contract lows.
“I think we have some specs taking us down to the short side, they know they can push it and they’re pushing it,” said a Winnipeg-based trader.
Losses in the vegetable oil market added to the bearish scene.
The South American harvest continues to speed ahead which helped to undermine values.
However, the Canadian dollar was lower relative to its US counterpart, which made canola more attractive to out-of-country buyers.
CBOT soybeans and crude oil were both higher which supported values.
Commercial demand remains steady.
About 13,000 canola contracts had traded as of 10:45 CST.
Milling wheat and durum were untraded and unchanged while 125 barley contracts changed hands.
Prices in Canadian dollars per metric ton at 10:45 CST:
