By Terryn Shiells, Commodity News Service Canada
June 28, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Friday morning, with forecasts calling for generally favourable weather for crop development in western Canada behind some of the price weakness.
Some of the activity was also linked to positioning ahead of Friday morning’s USDA stocks and acreage reports, due out at 11:00 a.m. CDT.
Weakness in outside oilseed markets, including Malaysian palm oil and European rapeseed also spilled over to weigh on canola, analysts said.
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A pick up in farmer selling, as producers are focusing on marketing now that seeding is complete, put additional downward pressure on values.
However, the need to keep a weather premium in the market due to excessive amounts of moisture in some western Canadian growing regions, limited the declines.
Concerns about the tight canola supply situation also provided some underlying support.
Prices could see a bounce later in the day, as traders position themselves ahead of the Canadian long weekend. Canadian markets will be closed to observe Canada Day on Monday, July 1.
As of 8:37 CDT, about 1,585 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:37 CDT:
