By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 29 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Monday, seeing some follow-through selling after last week’s move below nearby support.
Activity was thin and choppy, with the US markets closed for Memorial Day. Speculators were the noted sellers as they pushed values in an attempt to bolster their short positions and the thin volumes exaggerated the losses.
Ideas that soybeans will keep moving lower when activity resumes in the US also weighed on prices, according to traders.
Relatively favourable seeding weather across the Prairies added to the softer tone, although there are still wet areas that will likely end up unplanted this spring.
Concerns over tightening old crop supplies, together with steady end user demand, provided underlying support for canola, said traders.
The Canadian dollar held near unchanged on Monday, providing little direction for the canola market.
About 4,178 canola contracts traded on Monday, which compares with Friday when 21,526 contracts changed hands. Spreading accounted for 1,182 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
