By Terryn Shiells, Commodity News Service Canada
June 24, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved lower Monday morning, undermined by reports that weather has been generally favourable for the development of western Canadian canola crops, analysts said.
Spill over pressure from the losses seen in outside oilseed markets, including Malaysian palm oil, European rapeseed and Chicago soybeans, further weighed on canola.
Some of the selling seen in oilseed markets was linked to continued economic concerns, as the US Federal Reserve is expected to start easing stimulus programs in the country.
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Expectations that Statistics Canada will raise its canola acreage number in their report on Tuesday, June 25, added to the bearish tone. The government agency previously estimated canola area would total 19.13 million acres in 2013/14 (Aug/Jul).
However, the sharp downswing in the value of the Canadian dollar and concerns about excessive rain in some regions in Alberta and Saskatchewan limited the declines.
Continued concerns about the tight Canadian canola supply situation kept a firm floor under the market.
Canola prices could also see a bit of a bounce later in the day, as traders position themselves ahead of Tuesday’s Statistics Canada acreage report, brokers noted.
As of 8:40 CDT, about 1,810 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Monday morning.
Prices in Canadian dollars per metric ton at 8:40 CDT:
