By Terryn Shiells, Commodity News Service Canada
August 29, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:42 CDT Thursday, following the losses seen in Chicago soyoil futures.
Spillover pressure from the weakness seen in Malaysian palm oil and European rapeseed futures overnight was also bearish.
Some of the price softness was also linked to steady farmer hedging following a sharp rally seen earlier in the week, brokers noted.
Expectations that western Canadian farmers will harvest a record large canola crop this fall also fuelled some of the declines.
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Forecasts calling for improving weather across US soybean growing regions next week, which could take some of the stress off the crop, further undermined values.
However, the need to keep a weather premium built into prices because there’s still a chance of frost before harvest in Western Canada limited the losses.
Steady buying interest from speculative accounts, as well as crushers, kept a firm floor under the market.
Activity was on the heavier side, with spread activity helping to augment the volume total. As of 10:42 CDT, about 14,290 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following slight price revisions after the close on Wednesday.
Prices in Canadian dollars per metric ton at 10:42 CDT:
