By Phil Franz-Warkentin, Commodity News Service Canada
July 30, 2013
Winnipeg – ICE Futures Canada canola contracts were weaker on Tuesday, settling at fresh contract lows once again as a lack of weather concerns and bearish technicals weighed on values.
The relatively favourable growing conditions seen across most of North America kept the bias to the downside in canola, according to traders.
Losses in the CBOT soy complex contributed to the weaker tone in canola. Speculators were noted sellers, adding to their short positions ahead of the month-end. Some stops were likely hit on the way down.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
Bargain hunting from end users at the lows did provide some underlying support, helping limit the losses, according to participants.
In addition, while crop conditions are good for the most part, there are still enough areas of concern to keep some risk premiums in the futures.
About 17,976 canola contracts were traded on Tuesday, which compares with Monday when 16,648 contracts changed hands. Spreading accounted for 8,380 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
