By Terryn Shiells, Commodity News Service Canada
June 6, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved lower Thursday morning, with speculative selling and a lack of fresh demand from commercials behind some of the price weakness, market watchers said.
Spill over pressure from the losses seen in outside oilseeds, including European rapeseed and Chicago soybeans, added to the bearish tone.
Some of the selling seen in soybeans and canola was linked to ideas that soybean acres will be up in the US this spring. As many as 1 million acres that were intended for corn could move into the oilseed crop because of the late spring in the US, analysts said.
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Reports that the canola crops that have been planted in western Canada so far are off to a good start, benefiting from good weather, further weighed on values.
Strong competition from the large South American soybean crop and a pickup in farmer selling into the cash market in western Canada also fuelled some of the declines.
However, continued concerns about the tight Canadian canola supply situation and weakness in the value of the Canadian dollar limited the declines.
The need to keep a weather premium in the market also provided some underlying support for canola values.
As of 8:37 CDT, about 3,100 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:37 CDT:
