By Phil Franz-Warkentin, Commodity News Service Canada
July 29, 2013
Winnipeg – ICE Futures Canada canola contracts closed lower on Monday, seeing some follow-through selling after last week’s move below key support.
Declines in CBOT soyoil, Malaysian palm oil, and European rapeseed futures kept the path of least resistance to the downside in canola, according to traders. Bearish technical signals added to the selling pressure, and fund selling was a feature as the November contract dropped further below the psychological C$500 per tonne level.
Relatively favourable growing conditions across most of western Canada put pressure on canola as well, with expectations mounting for a large crop this year.
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However, there are still enough areas of concern to keep some weather premiums in the futures, with cool temperatures being watched in parts of Alberta, said a broker. Scale down end user demand and short-covering at the lows were also said to have helped limit the losses.
About 16,648 canola contracts were traded on Monday, which compares with Friday when 14,431 contracts changed hands. Spreading accounted for 7,674 of the contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged on Monday.
Settlement prices are in Canadian dollars per metric ton.
