By Terryn Shiells, Commodity News Service Canada
September 10, 2013
WINNIPEG – ICE Futures Canada canola contracts closed weaker on Tuesday, undermined by pressure from advancing harvest activities in Western Canada, analysts said. Favourable weather has helped harvest activities advance rapidly, and forecasts call for more good conditions.
The upswing in the value of the Canadian dollar further weighed on values, as it made canola less attractive to crushers and international buyers.
A bearish technical bias, sparked by a recent break below key support in the November contract, also undermined values.
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Some spillover pressure from the weakness seen in Chicago soyoil futures added to the bearish tone.
However, the need to keep a weather premium built into prices until harvest is complete helped to limit the losses.
Ideas that canola is more attractively priced compared to other oilseeds kept a firm floor under the market.
About 24,760 canola contracts were traded on Tuesday, which compares with Monday when 24,459 contracts changed hands.
Barley, milling wheat and durum prices were untraded and unchanged following price revisions after the close on Monday.
Settlement prices are in Canadian dollars per metric ton.
