By Dwayne Klassen, Commodity News Service Canada
May 7, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower levels at 10:29 CDT Tuesday morning with the declines associated with bearish chart signals and the triggering of stop-loss orders, particularly in the July contract, market watchers said.
“Support in some of the canola futures were taken out leaving values subject to stop loss sell-orders, and that is exactly what happened,” a broker said.
Some of the selling was said to have been speculative in nature, but was also said to have included some commodity fund orders.
Read Also
Canadian Financial Close: C$ firm Friday
Glacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on…
The absence of willing buyers in canola helped to amplify the downward price slide seen in canola, traders said. Both crushers and export outlets have backed away from canola for the moment, brokers said.
General firmness in the Canadian dollar was also viewed as an undermining price influence.
The losses in canola were restricted by the long range weather outlooks for the Canadian prairies. The outlooks included additional cool and wet weather which could further impeded planting of the crop, brokers said.
At 10:29 CDT, about 9,419 canola contracts had changed hands. Spreading was a feature accounting for 1,060 of the contracts traded.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:29 CDT:
