By Terryn Shiells, Commodity News Service Canada
July 23, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 8:37 CDT Tuesday, undermined by a lack of follow through-buying from Monday’s gains, traders said.
The upswing in the value of the Canadian dollar further weighed on prices, as it made canola more expensive to foreign buyers.
Some of the selling in the market was also linked to reports that many canola crops across western Canada are developing well amid favourable weather.
Read Also
Canadian Financial Close: Loonie drops, new record for TSX
Glacier FarmMedia | MarketsFarm – The Canadian dollar tumbled on Friday but still ended the week slightly higher than the last….
A pickup in farmer and technical based selling added to the bearish tone.
Chicago soybeans and soyoil were mostly lower Tuesday morning, and spill over selling from those markets also fuelled some of the losses.
However, there’s still enough uncertainty surrounding new crop canola production to keep a weather premium built into the market.
Values may also see a bounce later in the day, as prices have fallen to levels that may attract some bargain hunting by commercials, analysts said.
As of 8:37 CDT, about 1,689 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:37 CDT:
