By Terryn Shiells, Commodity News Service Canada
June 12, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Wednesday morning, amid choppy activity ahead of the USDA’s latest crop production report, to be released at 12:00 CDT Wednesday.
Profit-taking following Tuesday’s advances was behind some of the downward price slide, as was the upswing in the value of the Canadian dollar, analysts said.
Spill over pressure from the losses seen in most Chicago soybean contracts further weighed on the market.
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Some of the selling was also linked to reports that the Canadian canola crop is off to a good start amid beneficial weather.
A pick up in farmer selling added to the bearish tone in canola, as did spill over pressure from the weakness seen in Malaysian palm oil and European rapeseed futures overnight.
However, continued concerns about the tight Canadian canola supply situation helped to limit the declines.
The need to keep a weather premium built into values, as anything can happen throughout the growing season, kept a firm floor under the market.
As of 8:43 CDT, about 4,960 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:43 CDT:
