By Terryn Shiells, Commodity News Service Canada
Winnipeg, August 18 – The ICE Futures Canada canola market was down sharply at midday Tuesday, as a break through key support levels sparked fresh selling in the market, analysts said.
The November canola future dropped below the key C$480 per tonne level on Tuesday, which is keeping the market’s bias pointed lower, brokers added.
Some spillover pressure also came from weakness in outside oilseed markets, including Chicago soyoil futures.
Reports of canola harvest activities being underway in Western Canada added to the bearish tone, as did some speculative selling.
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However, concerns about forecasts calling for wet weather slowing harvest progress in parts of Western Canada this fall were supportive.
There’s also still enough uncertainty about the size of the 2015/16 Canadian canola crop to keep some caution in the market. Statistics Canada releases its first production estimates for 2015/16 on Friday, August 21. But, because the data will be three weeks old when it’s released, there will still be some uncertainty about the supply situation, a broker said.
As of 10:47 CDT Tuesday, about 13,800 contracts traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:47 CDT:
