By Phil Franz-Warkentin, Commodity News Service Canada
September 10, 2013
Winnipeg – ICE Canada canola contracts were weaker Tuesday morning, taking some direction from the losses posted in CBOT soybeans and soyoil.
The November canola contract settled below the psychological C$500 per tonne level for the second session in a row on Monday, despite an early attempt at correcting higher, which was seen as bearish from a technical standpoint, according to participants.
The advancing Canadian harvest and mounting expectations for a record large crop added to the softer tone in canola.
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Continued strength in the Canadian dollar was also bearish for canola, as the firmer currency cuts into crush margins and makes exports less attractive.
On the other side, there is still enough uncertainty over the size of the US soybean crop to provide underlying support for the oilseeds, including canola. Ideas that canola was starting to look oversold were also supportive.
About 3,000 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged, after seeing some adjustments following Monday’s close.
Prices in Canadian dollars per metric ton at 8:44 CDT:
