By Terryn Shiells, Commodity News Service Canada
Winnipeg, July 7 – The ICE Futures Canada canola market was down sharply at midday Tuesday, following the CBOT soybean complex as it got ‘crushed’, according to an analyst.
Chicago soybean, soyoil and soymeal futures were all seeing huge losses Tuesday, reacting to a sharply higher US dollar and better than expected US crop conditions ratings.
Additional downward pressure came from ideas that canola is looking expensive relative to other oilseeds, brokers added.
A lack of buying interest from the funds added to the bearish tone, as did a pickup in selling from speculative traders and end users.
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Forecasts calling for beneficial rainfall in the dry regions of Western Canada this week further undermined values. Though, the return of hot temperatures near 30 degrees Celsius is raising concerns.
Sharp weakness in the value of the Canadian dollar was also supportive for canola, as it made the commodity more attractive to foreign buyers.
As of 10:38 CDT Tuesday, about 13,700 contracts had traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:38 CDT:
