By Terryn Shiells, Commodity News Service Canada
WINNIPEG – Canola contracts on the ICE Futures Canada platform were softer Thursday morning, undermined by profit taking on Wednesday’s gains, analysts said.
Some spillover pressure also came from the weakness seen in European rapeseed futures overnight.
Ideas that Canadian canola supplies will be large in 2014/15, despite worries about flooding and dryness reducing yields in some parts of Western Canada were also bearish.
Continued good weather for the US soybean crop weighed on canola as well.
However, steady demand paired with slow farmer selling helped to limit the declines, as did spillover support from the gains in Malaysian palm oil futures.
The need to keep a weather premium built into prices kept a firm floor under the market.
As of 8:53 CDT Thursday, about 2,000 contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:53 CDT:
