By Terryn Shiells, Commodity News Service Canada
WINNIPEG, July 22 – Canola contracts on the ICE Futures Canada platform were weaker at 10:38 CDT Tuesday, hitting a fresh low in the November contract.
Speculators were behind the selling pressure, adding to their already large short position and aiming to break the market into new lows, analysts said.
Traders who thought canola prices would jump when news of flood damage in Western Canada broke out were also shedding their long positions.
The liquidation of canola/soy spreads was responsible for some of the weakness in canola as well, brokers added.
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Improving weather in Western Canada and very good conditions for the US soybean crop added to the bearish tone.
However, uncertainty surrounding how much damage has been done by excess moisture in parts of Manitoba and Saskatchewan limited the losses.
Ongoing worries about dryness in parts of Alberta, slow farmer selling and oversold price sentiment were also supportive.
As of 10:38 CDT Tuesday, about 7,900 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:38 CDT:
