By Terryn Shiells, Commodity News Service Canada
June 4, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved lower Tuesday morning, with profit-taking following Monday’s gains behind some of the downward price action, analysts said.
Canola values also moved lower in reaction to spill over pressure from the losses seen in the Chicago soybean complex. Declines seen in Malaysian palm oil and European rapeseed futures overnight added to the bearish tone.
An increase in farmer selling in western Canada, as producers take advantage of recent strong prices, also fuelled some of the declines.
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Competition from the large South American soybean crop, and talk that some of it could be imported into the US to relieve the tight supply situation, further weighed on the market.
Some of the selling seen in canola was linked to talk that the Canadian crop that has been planted is off to a good start.
However, concerns that excessive moisture in some North American oilseed growing regions may cause reduced soybean and canola limited the declines.
Continued worries about the tight Canadian canola supply situation and weakness in the value of the Canadian dollar slowed the losses as well.
As of 8:36 CDT, about 2,700 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:36 CDT:
