By Terryn Shiells, Commodity News Service Canada
August 20, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were correcting lower Tuesday morning amid sentiment that Monday’s advances were overdone, analysts said.
Spillover pressure from the losses seen in the Chicago soybean complex also helped to generate some of the downward price slide.
Speculation that the Canadian canola crop could produce a record large 16 million tonnes if weather problems are avoided added to the bearish tone.
However, concerns about hot, dry weather causing problems for soybean crops in the US helped to limit the declines.
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The downswing in the value of the Canadian dollar also helped to limit the losses, as it made canola more attractive to foreign buyers.
Activity is expected to be choppy throughout the day, as traders position themselves ahead of Wednesday’s Statistics Canada production report.
As of 8:33 CDT, about 3,340 canola contracts had traded.
Barley futures were untraded and unchanged. Milling wheat and durum futures were also untraded, though the Exchange moved prices higher after the close on Monday.
Prices in Canadian dollars per metric ton at 8:33 CDT:
