|By Phil Franz-Warkentin, Commodity News Service Canada|
|August 2, 2012|
|Winnipeg – ICE Canada canola futures were lower Thursday morning, seeing some follow-through selling on Wednesday’s declines.
Activity in the canola market was very thin and choppy in overnight activity, with participants already moving to the sidelines ahead of a long weekend. Canadian markets will be closed August 6 for a civic holiday.
Losses in the CBOT soybeans contributed to the weaker tone in canola, according to participants. European rapeseed and Malaysian palm oil futures were also softer overnight.
The firm Canadian dollar, relatively favourable Canadian crop conditions, and expectations for heavy farmer deliveries when the harvest starts up over the next few weeks continued to weigh on canola values as well. Bearish technical signals were also said to be putting some downward pressure on prices.
However, recent heat and disease issues in parts of western Canada were leading to some questions over the size of the canola crop, providing some underlying support, according to participants. Solid underlying end user demand also helped limit the declines.
Only about 330 canola contracts had traded as of 8:27 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:27 CDT:
Futures Prices as of June 19, 2013
Prices are in Canadian dollars per metric ton