By Terryn Shiells, Commodity News Service Canada
June 5, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform moved lower Wednesday morning, undermined by follow-through selling from Tuesday’s losses, analysts said.
Reports that beneficial weather has helped the canola crops that have been planted in western Canada get off to a good start, and good yield prospects so far, added to the bearish tone.
A pick up in farmer selling, as producers take advantage of recent strong prices, also put some downward pressure on canola values, as did a slowdown in commercial buying.
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Some of the selling was also linked to ideas that more soybean acres could be planted in the US this spring, as some area intended for corn could move into the oilseed crop.
Competition from the large South American soybean crop also fuelled some of the declines.
However, continued concerns about the tight Canadian canola supply situation helped to slow the declines, as did weakness in the value of the Canadian dollar.
The need to keep a weather premium in the market also provided some underlying support for canola values.
As of 8:36 CDT, about 2,850 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:36 CDT:
