By Phil Franz-Warkentin, Commodity News Service Canada
July 18, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were down sharply at midday Friday amid ideas that gains earlier in the week were overdone.
Losses in the European MATIF rapeseed market due to changing biodiesel requirements accounted for some spillover selling in canola, according to a broker.
Recent rainfall in some of the dry areas of Alberta was also said to somewhat bearish for canola, although the broker noted that the moisture also brought damaging hail in some cases.
Positioning ahead of the weekend was a feature, with light farmer selling, a lack of significant end user demand, bearish technicals, and a firmer Canadian dollar all contributing to the losses, according to participants.
On the other side, CBOT soybeans and soyoil were firmer on Friday, which was somewhat supportive for canola.
About 8,000 canola contracts had traded as of 10:53 CDT.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:53 CDT:
