|By Phil Franz-Warkentin, Commodity News Service Canada|
|July 31, 2012|
|Winnipeg – ICE Canada canola futures were mostly lower Tuesday morning in choppy activity, as the market saw some consolidation after Monday’s move higher.
Gains in CBOT soybeans were said to be providing some underlying support for canola, but soyoil was lower and soybeans were also starting to back away from their overnight highs. Malaysian palm oil futures were also down in overnight activity.
The hot and dry Midwestern US weather conditions remain supportive for the North American agricultural markets overall, according to traders. However, crop conditions for the Canadian canola crop are said to be looking relatively favourable overall.
Steady farmer selling and a firm Canadian dollar, which was trading just below parity with its US counterpart, also weighed on canola, according to participants.
Canola was lacking any clear direction from a technical standpoint, said an analyst, although he noted that Monday’s move higher may have shifted the bias back to the upside.
About 3,000 canola contracts had traded as of 8:35 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:35 CDT:Price Change
Canola Nov 621.40 dn 2.20
Jan 624.10 dn 2.20
Mar 625.30 dn 2.20
Milling Wheat Oct 327.50 unch
Dec 335.00 unch
Durum Oct 330.40 unch
Dec 334.90 unch
Barley Oct 264.50 unch
Dec 269.50 unch
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton