By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, July 25 (CNS Canada) – ICE Futures Canada canola contracts were down at midday Tuesday, retreating from earlier gains as fund selling weighed on prices.
“There are some speculative sellers in this market that are leaning on the short side,” said a broker.
Chicago Board of Trade soybeans also turned lower following overnight advances, which contributed to the softer tone in canola, according to participants. Continued strength in the Canadian dollar, which is trading around 80 US cents, also put some pressure on canola.
However, ongoing production uncertainty in Western Canada provided support.
“Fifty per cent of the Prairies is getting reasonably good weather, but the other half isn’t,” said the broker. He added that average yields will be down on the year, but the extent of that reduction remains to be seen.
Tight old crop supplies and the need to ration demand going forward also helped underpin canola.
About 10,500 canola contracts had traded as of 10:48 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
