ICE canola continues downward slide

By Phil Franz-Warkentin, Commodity News Service Canada

WINNIPEG, Sept. 4 – ICE Canada canola contracts were seeing a continuation of their well established downtrend Friday morning, as both the fundamentals and technicals remain pointed lower for the time being.
Canola was still seeing some follow-through selling after yesterday’s surprisingly bearish stocks report from Statistics Canada, as supplies were well above trade estimates and the government agency also raised its production estimates for the previous two years.
Losses in CBOT soyoil weighed on canola as well, according to participants.

Read Also

Canadian Financial Close: Loonie holds steady

By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar remained firm on Monday following modest increases in…

Seasonal harvest pressure added to the softer tone, although there are also still enough areas of concern to help limit the losses to some extent, according to participants.
The Canadian dollar was weaker in early activity, which also provided some underlying support for canola.
Canadian and US markets will be closed Monday for Labour Day, and positioning ahead of the long weekend could lead to some choppy activity throughout the session.
About 10,000 canola contracts had traded as of 8:55 CDT.
Milling wheat, durum, and barley futures were all untraded.
Prices in Canadian dollars per metric ton at 8:55 CDT:

Price Change
Canola Nov 455.10 dn 2.30
Jan 460.60 dn 2.80
Mar 464.00 dn 3.60
Milling Wheat Oct 221.00 unch
Dec 221.00 unch
Durum Oct 335.00 unch
Dec 335.00 unch
Barley Oct 184.00 unch
Dec 184.00 unch