By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 15 – Canola contracts on the ICE Futures Canada platform were down at midday Wednesday, as speculative long liquidation weighed on prices for the third straight session.
Losses in CBOT soybeans and soyoil contributed to the technical selloff in canola, according to participants.
Improving crop prospects in North America, with recent rains in parts of Western Canada and drier forecasts for the wet Midwest were also bearish.
However, there are still more than enough areas of concern to keep some weather premiums in the market, with canola production generally expected to be down considerably on the year.
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That production uncertainty was keeping end users in the market on a scale down basis, according to participants.
A sharply weaker tone in the Canadian dollar, which lost over one cent relative to its US counterpart following news that the Bank of Canada was cutting interest rates, also helped limit the losses in canola.
About 12,000 canola contracts had traded as of 10:57 CDT.
Milling wheat, durum, and barley were all untraded.
Prices in Canadian dollars per metric ton at 10:57 CDT:
