By Dave Sims, Commodity News Service Canada
WINNIPEG, May 26 – Canola contracts on the ICE Futures Canada platform were weaker at 10:42 CDT on Friday, following declines in the US soy complex and bearish technical signals.
“The funds are sitting on their hands and the technicals have turned flat to negative,” said a trader in Winnipeg. “They (the funds) are also long 12,000 to 15,000 contracts.
Weather conditions are expected to be favourable for planting and other fieldwork over the next five days, which was bearish for values.
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There are ideas some US farmers may be preparing to swap out acres intended for corn with soybeans, which undermined canola.
The trader added there are also concerns about demand from China.
Declines in Malaysian palm oil and slight gains in the Canadian dollar also dragged on values.
However, wet soil conditions in parts of western Alberta and northern Saskatchewan were supportive for prices as many farmers are unable to get onto the field to start planting.
Canadian commercial canola stocks are tight, which help limit the losses.
About 11,000 canola contracts had traded as of 10:42 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:42 CDT:
