By Terryn Shiells, Commodity News Service Canada
July 11, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:34 CDT Thursday, with reports of generally good weather conditions for the development of western Canadian canola crops behind much of the price softness, analysts said.
According to traders, beneficial weather has resulted in canola crops flowering for two weeks this summer, which will be beneficial for seed development.
The upswing in the value of the Canadian dollar added to the bearish tone, as it made the commodity more expensive to the export sector.
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Expectations that the monthly USDA supply and demand report, due out at 11:00 CDT Thursday, will be bearish for the Chicago grain markets also sparked some of the selling in canola.
A pick up in farmer selling in western Canada, as farmers are more certain they’ll harvest a good crop this fall, further weighed on prices.
However, some spill over support from the advances seen in Chicago soybeans and soyoil helped to limit the downside potential.
The need to keep a weather premium built into the market, because anything could happen, kept a firm floor under prices.
As of 10:34 CDT, about 5,830 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:34 CDT:
