ICE canola down to start the week

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Published: July 6, 2015

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, July 6 – ICE Canada canola contracts were down sharply Monday morning, retreating from last week’s highs as losses in the CBOT soy complex spilled over to weigh on prices.
Weather conditions in the US Midwest reportedly showed some improvement over the weekend, which accounted for some of the selling pressure south of the border. Malaysian palm oil and European rapeseed futures were also lower overnight.
The general sense of uncertainty in the global economic markets following the Greek referendum vote over the weekend was also casting a bearish tone over the commodity markets, according to participants.

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However, the Canadian dollar was also weaker Monday morning, which did lend some support to canola.
Ongoing concerns over hot and dry weather conditions across a large portion of the Canadian Prairies also continued to underpin the futures.
The nearby technical bias remains pointed higher as well, which was making any losses a good buying opportunity, according to some analysts.
About 4,800 canola contracts had traded as of 8:46 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:46 CDT:

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