By Jade Markus, Commodity News Service Canada
WINNIPEG, June 21 – ICE Canada canola contracts moved lower on Tuesday, as traders liquidated long positions.
Investors started flushing money out of Chicago Board of Trade soybeans, which caused greater losses in canola, since the market is thinner.
“When it flushes, it flushes a lot faster than the other markets,” one Winnipeg-based trader said.
The liquidation hasn’t been prompted by any significant news, the trader said, but favorable weather has taken out speculative buying.
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“We’ve gotten crops off to a better start this year, as a whole across all of North America, than we’ve seen for many, many years,” he said.
He added that canola’s move lower will likely cause shorts to cash-in profits.
But the market may have notched a low, and could rebound in coming sessions, as prices are overdone, he said.
“It’s very, very cheap now, compared to the soy markets, which is attractive to buyers.”
About 25,252 contracts had traded as of 10:30 CDT.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric tonne at 10:30 CDT:
