Add support for Entity Reference relationships while we wait for core to solve this issue.
Read more: http://drupal.org/node/1340748

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#1 ns-core-add-entityreference-ctools-relationships-1999742-1.patch508 bytestimbrandin

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timbrandin commented
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new ns-core-add-entityreference-ctools-relationships-1999742-1.patch508 bytes

Adding a patch for a working solution.
To test, apply patch and edit/save your entity references once more and they will give a working context with the correct entity in panels.