By Phil Franz-Warkentin, Commodity News Service Canada
July 18, 2013
Winnipeg – ICE Canada canola contracts were weaker Thursday morning, as the market continues to test major support to the downside.
After seeing a corrective bounce on Wednesday the November canola contract was back trading just above C$520 per tonne Thursday morning. With the technical trend said to be looking bearish, analysts cautioned that the selling could easily build on itself should that level be breached.
Relatively favourable crop conditions across most of North America contributed to the softer tone in canola, according to traders.
However, there are still enough areas of concern to keep some weather premiums in the futures, which provided some support. A firmer tone in CBOT soyoil was also said to be helping limit the losses in canola.
About 2,500 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:40 CDT:
