By Terryn Shiells, Commodity News Service Canada
July 23, 2013
WINNIPEG – ICE Futures Canada canola contracts closed lower on Tuesday, following the sharp losses seen in Chicago soybeans, analysts said.
Spill over pressure from the declines seen in European rapeseed futures and CBOT soyoil values added to the bearish tone.
Some of the losses seen in canola were also tied to the upswing in the value of the Canadian dollar, as it made the commodity more expensive to crushers and foreign buyers.
A lack of fresh demand and generally favourable weather conditions across western Canada added to the bearish tone in canola.
Some chart-based selling, as the technical bias is now turned to the downside, was also responsible for some of the weakness.
However, slow farmer selling and the need to keep a weather premium built into prices helped to limit the losses.
About 13,495 canola contracts were traded on Tuesday, which compares with Monday when 14,145 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Tuesday.
Settlement prices are in Canadian dollars per metric ton.
