By Terryn Shiells, Commodity News Service Canada
August 14, 2013
WINNIPEG – ICE Futures Canada canola contracts closed mostly lower on Wednesday, with the stronger Canadian dollar helping to curb some buying interest, analysts said.
Spill over pressure from the losses seen in outside oilseed markets; including Chicago soyoil, Malaysian palm oil and European rapeseed futures, was also bearish.
Some of the weakness in the market was also linked to a pick up in farmer selling into the cash pipeline, according to brokers.
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Ideas that the Canadian canola crop has the potential to be very large this year if it doesn’t run into any weather problems further undermined prices.
Forecasts calling for beneficial warmer weather also fuelled some of the declines, as did technical based selling.
But, traders are still concerned about slow crop development in Western Canada due to recent cooler weather, which helped to limit the losses.
Some spill over support from the advances seen in Chicago soybeans was also bullish.
About 11,461 canola contracts were traded on Wednesday, which compares with Tuesday when 18,739 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday after seeing some price revisions by the Exchange after the close on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
