By Phil Franz-Warkentin, Commodity News Service Canada
July 29, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT Monday, hitting fresh contract lows as losses in outside oilseed markets contributed to the bearish tone in the market.
Declines in Malaysian palm oil, CBOT soyoil, and European rapeseed futures kept the path of least resistance to the downside in canola as well. “Globally, oilseeds continue to get pounded, and canola is in there with the rest of them,” said a broker. Bearish technical signals added to the selling pressure, as the November contract dropped further below the psychological C$500 per tonne level. Fund selling was a feature, as they added to their large short positions.
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Average to above-average growing conditions across most of western Canada were also putting pressure on canola, said a broker who noted that “the crop is looking pretty good out there.”
However, there are still enough areas of concern to keep some weather premiums in the futures, with cool temperatures being watched in parts of Alberta. Scale down end user demand helped limit the losses as well.
At 10:40 CDT, about 11,000 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
