By Phil Franz-Warkentin, Commodity News Service Canada
July 4, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:51 CDT Thursday, with thin volumes exaggerating the losses.
US markets were closed Thursday for the Independence Day holiday, and the lack of direction from the soybean market kept many Canadian traders on the sidelines as well.
Relatively favourable weather conditions for crop development across most of western Canada accounted for some of the weakness in canola, according to participants.
Losses in other outside markets, including crude oil and European rapeseed futures, put some spillover pressure on canola as well.
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On the other side, supportive technical signals helped limit the downside potential in canola, according to an analyst. The November canola contract was testing the low edge of its well established trading range on Thursday.
Tight old crop supplies and uncertainty over new crop production were also underpinning the canola market.
While most of the canola crop is thought to be in good shape, up to 20% of fields are dealing with some kind of problem, such as excessive moisture, said traders. Forecasts calling for hot temperatures in many areas over the next week were also somewhat supportive, as canola fields enter the flowering stage of development.
At 10:51 CDT, about 800 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:51 CDT:
