By Terryn Shiells, Commodity News Service Canada
August 16, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were narrowly mixed Friday morning amid spill over support from the gains seen in Malaysian palm oil and pressure from the losses seen in the Chicago soybean complex, analysts said.
Canola prices found some support from the need to keep a weather premium built into prices, due to concerns about slow crop development in Western Canada and early frost damage.
Tight old crop supply worries, concerns about dry weather harming US oilseed crops and good export demand also underpinned values.
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Further support came from the downswing in the value of the Canadian dollar, as it made canola more attractive on the export market.
On the other side, expectations that Canadian canola production will be record large as long as the crop avoids weather problems ahead of harvest were bearish.
Forecasts calling for beneficial warmer weather, which will help speed up crop development across the Prairies, were also undermining values.
As of 8:33 CDT, about 1,845 canola contracts had traded.
Barley and durum futures were untraded and unchanged. Milling wheat futures were also untraded, though the Exchange moved prices slightly higher after the close on Thursday.
Prices in Canadian dollars per metric ton at 8:33 CDT:
