By Terryn Shiells, Commodity News Service Canada
July 24, 2013
WINNIPEG – ICE Futures Canada canola contracts closed lower on Wednesday, following the losses seen in Chicago soybeans and soyoil, analysts said.
Declines seen in other outside oilseed markets, including Malaysian palm oil and European rapeseed futures, put further downward pressure on values.
Technical based selling was also responsible for some of the downward price action, as was a slowdown in demand, brokers noted.
Reports that weather conditions across western Canada have been generally favourable for crop development added to the bearish tone.
However, the downswing in the value of the Canadian dollar limited the declines, as it made canola more attractive to foreign buyers.
The need to keep a weather premium built into prices also tempered the losses, as did slow farmer selling.
About 13,957 canola contracts were traded on Wednesday, which compares with Tuesday when 13,495 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged on Wednesday.
Settlement prices are in Canadian dollars per metric ton.
