By Terryn Shiells, Commodity News Service Canada
July 18, 2013
WINNIPEG – ICE Futures Canada canola contracts closed lower on Thursday, with the November contract breaking below the key technical support of C$520 per tonne, which was being tested throughout the trading session.
Brokers noted that with the key support level of C$520 now broken, futures could move down into the C$500 per tonne level.
Some of the weakness in canola values was linked to spill over pressure from the losses seen in Chicago soybeans and soyoil.
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Improving weather forecasts for oilseed crop development in Canada and the US also sparked some of the selling seen on Thursday.
The stronger Canadian dollar further weighed on canola values, as it made the commodity less attractive to crushers and international buyers.
A pick-up in farmer selling also fuelled some of the declines, analysts said.
However, the need to keep a weather premium built into the market limited the losses. Traders say there is still some uncertainty surrounding new crop canola production because there is still a lot of time left in the growing season.
About 11,759 canola contracts were traded on Thursday, which compares with Wednesday when 10,572 contracts changed hands. Spreading accounted for 4,262 of the contracts traded.
Milling wheat, durum and barley futures were untraded on Thursday.
Settlement prices are in Canadian dollars per metric ton.
