By Terryn Shiells, Commodity News Service Canada
July 25, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Thursday morning, with the November contract breaking below the psychological support level of C$500 per tonne.
Canola futures moved lower, led by eroding outside vegetable oil markets, including Chicago soyoil and Malaysian palm oil.
Traders said Chicago soyoil markets were nearing new contract lows Thursday morning, while Malaysian palm oil futures dropped to their weakest levels in over four years overnight.
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Chart-based selling also fuelled some of the declines, as the technical bias is now to the downside, analysts said.
Weakness in the cash market, as the premium old crop values have held over new crop is quickly being erased, added to the bearish tone.
Reports of generally favourable weather conditions for crop development in western Canada further weighed on values, as did the upswing in the value of the Canadian dollar.
However, prices could come off their lows later in the trading day as participants should keep a weather premium built into the market.
As of 8:40 CDT, about 3,598 canola contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:40 CDT:
