By Phil Franz-Warkentin, Commodity News Service Canada
August 29, 2013
Winnipeg – ICE Canada canola contracts were weaker Thursday morning, continuing to back away from Monday’s sharp advances as the weather rally in the US soy complex shows signs of slowing down.
Most of the support in canola recently has stemmed from the weather related strength in CBOT soybeans, but the hot and dry Midwestern conditions expected to turn more moderate over the next week. The CBOT soy complex was mixed in early activity.
The looming harvest of a record large Canadian canola crop also remains a bearish influence overhanging the futures, according to participants. Increased farmer selling, as producers start to make more harvest progress, also weighed on values.
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However, there is still enough uncertainty over the state of the US soybean crop to keep some support under the oilseed markets. The lateness of this year’s canola crop may also still leave some fields vulnerable to early frost damage, although Canadian weather conditions have helped the crop make good progress in most areas.
About 4,800 canola contracts had traded as of 8:40 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged, after wheat saw some minor adjustments following Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:40 CDT:
