By Phil Franz-Warkentin, Commodity News Service Canada
July 4, 2013
Winnipeg – ICE Futures Canada canola contracts settled lower on Thursday, as relatively favourable weather conditions across western Canada weighed on values in the absence of any spillover direction from the US markets.
US markets were closed Thursday for the Independence Day holiday, and the lack of direction from CBOT soybeans kept many Canadian traders on the sidelines as well.
Weather conditions for crop development look reasonably good across most of western Canada, according to participants accounting for some of the selling pressure in canola.
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Losses in other outside markets, including crude oil and European rapeseed futures, also weighed on canola values.
However, supportive technical signals helped limit the downside potential in canola, as prices held above long-term support, said an analyst.
Tight old crop supplies and uncertainty over new crop production were also underpinning the canola market.
While most of the canola crop is thought to be in good shape, up to 20% of fields are said to be dealing with some kind of problem, such as excessive moisture. Forecasts calling for hot temperatures in many areas over the next week were also somewhat supportive, as canola fields enter the key flowering stage of development.
About 1,587 canola contracts were traded on Thursday, which compares with Wednesday when 6,896 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday.
Settlement prices are in Canadian dollars per metric ton.
