By Terryn Shiells, Commodity News Service Canada
July 18, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT Thursday, following the losses seen in Chicago soybeans, analysts said.
Soybeans moved lower in reaction to forecasts calling for beneficial precipitation across US soybean growing regions over the weekend.
A bearish technical bias also sparked some of the selling in the canola market on Thursday. Traders were testing the key support level of C$520 per tonne. If that’s broken, the market could quickly drop down to the C$500 per tonne level, brokers noted.
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Reports of generally good weather for crop development across western Canada also fuelled some of the declines in canola.
The Canadian dollar was firmer on Thursday, which put additional downward pressure on values.
However, the steadier tone seen in Chicago soyoil helped to limit the downside in canola.
The need to keep a weather premium built into prices kept a firm floor under the market.
As of 10:40 CDT, about 7,630 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
