By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Sept. 11 – Canola contracts on the ICE Futures Canada platform were lower at 10:23 CDT Thursday, hitting fresh lows ahead of the USDA’s monthly report, due out at 11:00 CDT. The November contract fell to C$410.40 per tonne Thursday morning, beating the previous low of C$410.70 per tonne hit on September 4.
Expectations that the USDA will increase their 2014/15 US soybean production in the report and spillover from the weakness in CBOT soybeans were bearish.
Ideas that canola crops are far enough along to avoid significant damage from frost in many parts of Western Canada this week also weighed on the market, analysts said.
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Some farmer selling, as harvest is starting to get underway in some parts of the Prairies, further undermined values.
The losses were exaggerated by recent light volumes, due to the lack of aggressive buyers in the market, brokers added.
However, weakness in the value of the Canadian dollar tempered the declines, as it made canola more attractive to crushers and exporters.
The need to keep a weather premium built into prices until the canola harvest is complete was also supportive.
As of 10:23 CDT Thursday, about 8,150 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:23 CDT:
