By Terryn Shiells, Commodity News Service Canada
May 2, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were firmer Thursday morning, lifted by sentiment that the market was oversold and in need of a correction to the upside, analysts said.
Some of the buying seen in the Chicago soybean complex spilled over into canola, which added to the bullish tone.
Continued concerns about tight canola supplies in Canada provided further support, as did slow farmer selling.
The canola market was also underpinned by increasing worries about delayed seeding in western Canada. Weather continues to be unfavourable, and some regions received even more snow earlier in the week.
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However, spillover pressure from the losses seen in Malaysian palm oil and European rapeseed overnight limited the gains.
Concerns that export demand is starting to slow, and ideas that the US will plant more soybean acres than originally intended this spring were also bearish.
Trading could be choppy throughout the day, as traders square positions ahead of Friday’s stocks report from Statistics Canada. The report will show total Canadian canola supplies as of March 31, 2013.
As of 8:43 CDT, about 3,960 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:43 CDT:
