By Dwayne Klassen, Commodity News Service Canada
May 30, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at 10:19 CDT Thursday morning with some of the downward price action associated with the taking of profits and the losses displayed by CBOT soybean and soyoil futures, market watchers said.
Weakness in canola was also linked to ideas that with the majority of the intended acreage now in the ground across western Canada, crops were developing under some very good conditions. However, the need to keep a weather premium built into values was helping to slow the downward slide in canola values.
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A pick up in elevator company hedge selling, tied in part to a jump in farmer deliveries into the cash pipeline, further undermined canola futures, brokers said. Chart-based speculative and commodity fund liquidation was also evident and helped to weigh on prices.
The small upswing in the value of the Canadian dollar early Thursday also added to the bearish price sentiment in the commodity.
Scale down buying by commercials helped to restrict the price losses.
As of 10:19 CDT, about 6,665 canola contracts had traded. Of the contracts traded, 3,186 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:19 CDT:
