By Terryn Shiells, Commodity News Service Canada
July 25, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were lower at 10:45 CDT Thursday, following the losses seen in the Chicago soybean complex, analysts said.
Spill over pressure from the losses seen in Malaysian palm oil futures overnight also fuelled some of the declines.
Technical selling, as the November contract broke below the psychological support level of C$500 per tonne, was also responsible for some of the price weakness.
Forecasts calling for non-threatening weather across some western Canadian canola growing regions added to the bearish tone, as did weakness in the cash market.
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The upswing in the value of the Canadian dollar further weighed on prices, as it made canola more expensive to crushers and foreign buyers.
However, there is still enough uncertainty about new crop canola production to keep a weather premium built into prices, which limited the declines.
A slowdown in farmer selling, as producers are waiting for stronger prices, also served to temper the losses.
As of 10:45 CDT, about 10,620 canola contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
