By Terryn Shiells, Commodity News Service Canada
May 21, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were narrowly mixed Tuesday morning, amid choppy activity.
Old crop values were underpinned by concerns about tight supplies and strength in the cash market, analysts said.
Continued worries about planting delays in western Canada, due to unfavourable weather seen over the weekend, provided further support.
The downswing in the value of the Canadian dollar and a strong technical bias kept a firm floor under the market.
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Deferred contracts were undermined by talk that commercial and export demand for canola is starting to decline and ideas that a recent rally in canola was overdone.
Some of the price weakness was also linked to reports that buyers are now turning to South America for oilseed supplies, as their crop is coming onto the market.
Spill over pressure from the losses seen in outside oilseed markets, including the Chicago soybean complex, Malaysian palm oil and European rapeseed, was also responsible for some of the downward price action.
As of 8:43 CDT, about 1,710 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Tuesday morning.
Prices in Canadian dollars per metric ton at 8:43 CDT:
