By Terryn Shiells, Commodity News Service Canada
WINNIPEG, March 7 – Canola contracts on the ICE Futures Canada platform were slightly lower at 10:50 CST Friday, seeing a downward correction after rallying over the past two weeks, analysts said.
Traders were also said to be taking profits ahead of the weekend and the USDA’s monthly supply and demand report on Monday, March 10.
Increased farmer selling, as prices are starting to look more favourable, also put downward pressure on the market.
Spillover pressure from the losses seen in Chicago soyoil futures added to the bearish tone.
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However, the downswing in the value of the Canadian dollar helped to limit the declines.
Ideas that Canada’s logistics problems have largely been priced into the market were also supportive. The Canadian government announced new legislation Friday morning that would make it mandatory for the Canadian National and Canadian Pacific railways to ship a minimum of 500,000 tonnes of grain per week. The legislation starts immediately, though the railways have four weeks to ramp up to the minimum tonnage, Canada’s Minister of Transport said at a news conference in Winnipeg.
As of 10:50 CST Friday, about 17,300 contracts had traded.
Milling wheat, barley and durum were untraded following price revisions after the close on Thursday.
Prices in Canadian dollars per metric ton at 10:50 CST:
