By Terryn Shiells, Commodity News Service Canada
March 7, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were mostly lower at 8:36 CST Thursday, amid choppy trade ahead of Friday’s USDA supply/demand report, analysts said.
Some of the price weakness was linked to ideas that canola is overpriced compared to other oilseeds. Profit-taking following Wednesday’s strong gains also undermined values.
Pressure from the advancing soybean harvest in Brazil, and expectations that a large amount of their crop will soon flood the market added to the bearish tone.
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A pick-up in farmer selling, sparked by strong prices on the cash market, was also responsible for some of the downward price action.
However, continued weakness in the value of the Canadian dollar limited the declines, as did steady commercial demand for canola.
Spillover support from the advances seen in outside oilseed markets, including the CBOT soybean complex and Malaysian palm oil, also underpinned canola values.
As of 8:36 CST Thursday, about 1,315 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:36 CST:
