By Phil Franz-Warkentin, Commodity News Service Canada
June 20, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:51 CDT Thursday, as the broad-based selling seen in the outside equity and commodity markets spilled over to weigh on values.
Much of the weakness in the financial and commodity markets on Thursday was in response to comments made by US Federal Reserve Chairman Ben Bernanke on Wednesday indicating the Fed may soon reduce its economic stimulus measures.
“The outside markets are seeing a big risk off day following Bernanke’s comments, and we’re just caught in the mix,” said a Winnipeg-based canola broker. The CBOT soy complex was also weaker on Thursday.
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While relatively favourable crop conditions across western Canada were putting some pressure on values as well, heavy rains in parts of Alberta and Saskatchewan were keeping some weather premiums in the futures, said participants.
Scale down commercial demand did help underpin the canola market, according to the broker, as exporters and domestic crushers took advantage of the downturn to price some routine business.
The weaker tone in the Canadian dollar, which was down by nearly a cent relative to its US counterpart, was also supportive for canola.
At 10:51 CDT, about 6,700 canola contracts had changed hands, with the July/November spread a feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:51 CDT:
