By Terryn Shiells, Commodity News Service Canada
June 10, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved lower Monday morning, following the losses seen in the Chicago soybean complex, analysts said.
The weakness seen in European rapeseed and Malaysian palm oil futures overnight was also bearish.
Some of the selling seen in canola was linked to forecasts calling for beneficial weather for both Canadian canola and US soybean crops this week.
The unloading of risk assets, sparked by disappointing economic news from China, was also responsible for some of the price weakness.
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The upswing in the value of the Canadian dollar put further downward pressure on canola, as it made the commodity more expensive to foreign buyers.
However, continued concerns about the tight Canadian canola supply situation and steady commercial demand limited the declines.
Uncertainty surrounding the weather situation throughout the growing season and the need to keep a weather premium in the market also provided some underlying support.
Activity was on the quiet side Monday morning. As of 8:36 CDT, only about 845 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Monday morning.
Prices in Canadian dollars per metric ton at 8:36 CDT:
