By Phil Franz-Warkentin, Commodity News Service Canada
August 20, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:57 CDT Tuesday, seeing a bit of a correction following Monday’s rally.
After climbing sharply on Monday in sympathy with the US soy complex, both markets were due for some consolidation on Tuesday as they corrected lower.
In addition to the speculative selling, some farmer hedges were also said to be coming forward. Canada’s canola crop is generally in good shape, and Monday’s bounce was seen as a good selling opportunity given the looming harvest pressure.
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However, hot and dry US weather conditions have led to some uncertainty over the state of the US soybean crop, which helped limit the losses in the canola market as well on Tuesday, according to a broker.
Scale down end user demand, particularly from domestic crushers, also served to temper the declines, according to participants.
At 10:57 CDT, about 7,800 canola contracts had changed hands, with spreading only a minor feature.
Milling wheat, durum, and barley futures were untraded and unchanged after seeing prices adjusted following Monday’s close.
Prices in Canadian dollars per metric ton at 10:57 CDT:
