By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 7 – ICE Canada canola contracts were down Tuesday morning, retreating from Monday’s late bounce as losses in CBOT soybeans and soyoil put some pressure on values.
Ideas that canola is looking expensive compared to other oilseeds contributed to the early weakness, with the nearby technical signals also suggesting that a correction may be in order, according to analysts.
However, canola was lagging the US soy complex to the downside, as the underlying fundamentals and ongoing concerns over adverse growing conditions in Western Canada remain supportive.
A weaker tone in the Canadian dollar, which has dropped sharply relative to its US counterpart over the past few days, also helped limit the losses in canola, according to participants.
About 6,700 canola contracts had traded as of 8:54 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:54 CDT:
