By Terryn Shiells, Commodity News Service Canada
July 23, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT Tuesday, following the losses seen in outside oilseed markets, analysts said.
Spill over pressure from the losses seen in the Chicago soybean complex and European rapeseed futures were responsible for some of the losses in canola.
Some of the price weakness was also linked to the upswing in the value of the Canadian dollar, as it made canola more expensive for crushers and international buyers.
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A lack of fresh demand also fuelled some of the declines, as did some technical-based selling.
Reports that weather conditions are generally favourable for canola crop development across western Canada added to the bearish tone.
But, there is still enough uncertainty about the new crop to keep a weather premium built into prices, which limited the losses.
A slowdown in farmer selling, as they’re waiting for prices to strengthen, also served to temper the downside in canola futures, brokers said.
Activity was on the quiet side on Tuesday. As of 10:40 CDT, about 6,615 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
