By Terryn Shiells, Commodity News Service Canada
July 25, 2013
WINNIPEG – ICE Futures Canada canola contracts closed lower on Thursday, with the November contract staying below the support level of C$500 per tonne which was broken early on in the day.
Spill over selling from the losses seen in outside oilseed markets, including Chicago soybeans and soyoil, as well as Malaysian palm oil, weighed on canola values.
Technical selling, as the bias is now pointed to the downside, further undermined prices, as did the upswing in the value of the Canadian dollar.
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Some of the declines were also linked to forecasts calling for generally favourable weather for western Canada’s canola crops and reports that many fields are in good shape.
Weakness in the cash market was also responsible for some of the downward price action. Traders noted that the premium that old crop values held over new crop prices has quickly eroded.
However, slow farmer selling and the need to keep a weather premium in the market limited the declines.
About 16,697 canola contracts were traded on Thursday, which compares with Wednesday when 13,957 contracts changed hands. Spreading accounted for 6,248 of the trades made.
Milling wheat, durum and barley futures were untraded and unchanged on Thursday.
Settlement prices are in Canadian dollars per metric ton.
