By Terryn Shiells, Commodity News Service Canada
July 22, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Monday morning, undermined by reports that many canola fields in western Canada are developing well amid favourable weather, traders said.
Some of the selling in the market was also tied to the upswing in the value of the Canadian dollar. The stronger Canadian currency makes canola more expensive for crushers and foreign buyers.
A bearish technical bias and some chart-based selling were also responsible for some of the downward price slide, as was spill over pressure from the weakness seen in European rapeseed futures.
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However, the need to keep a weather premium built into the market helped to limit the declines.
Spill over support from the gains seen in the Chicago soybean complex also helped to temper the losses.
There’s a possibility that the market could see a bounce later in the day, supported by commercial buying and oversold price sentiment, analysts said.
As of 8:37 CDT, about 2,540 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Monday morning.
Prices in Canadian dollars per metric ton at 8:37 CDT:
