Winnipeg Commodity Exchange canola futures settled lower on Wednesday in thin trade on light hedges and good crop ratings, traders said. Canola ended 70 cents to $2.30 per tonne lower, with July down 70 cents at $378.90, November down $2.30 at $398.90 and January down $1.10 at $407.70.
With the Chicago Board of Trade closed for the US July 4 holiday, canola struggled to find direction, traders said, with speculators unwilling to take a firm stance in what has been a volatile US weather market.
Some participants were sellers in anticipation that Chicago soy would open weaker on Thursday on follow-through fund liquidation from Tuesday. Crushers were buyers of canola, but exporters were sidelined, traders said.
Light farmer selling added to the weakness. "Hedges that are in the market are hangover hedges from Friday" when oilseed markets raced higher, a trader said.
Canola crops in the key province of Saskatchewan were rated 83 percent in good to excellent condition, up from 77 percent last week, with more than 64 percent at or ahead of normal development, the provincial crop report said.
In options trade, 20 November $370 puts traded at $6.90. An estimated 238 November/January spreads traded from $8.70 to $9.10 with 235 November/November at $20 and 84 July/November from $20.50 to $21.50.
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