By Terryn Shiells, Commodity News Service Canada
July 15, 2013
WINNIPEG – ICE Futures Canada canola contracts fell below key support levels on Monday and failed to recover before the close, as the move sparked technical selling which pressured the market throughout the day.
Brokers noted that with the key support level of C$530 per tonne now broken, new support should be found at the C$520 per tonne level.
Some of the selling seen in canola was also linked to reports that most western Canadian canola crops are developing well amid generally favourable weather conditions.
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Spill over pressure from the losses seen in Chicago soyoil futures was also responsible for some of the price weakness.
A pick up in farmer selling further weighed on values. Producers are more willing to market their canola because they’re becoming more confident that they will be able to harvest a good crop this fall.
However, the downswing in the value of the Canadian dollar helped to limit the declines, as it made canola more attractive to foreign buyers.
About 14,436 canola contracts were traded on Monday, which compares with Friday when 11,663 contracts changed hands.
Milling wheat, durum and barley futures were untraded on Monday.
Settlement prices are in Canadian dollars per metric ton.
