By Phil Franz-Warkentin, Commodity News Service Canada
May 27, 2014
Winnipeg – ICE Canada canola contracts were down Tuesday morning, as losses in most outside oilseed markets spilled over to weigh on values.
CBOT soybeans, Malaysian palm oil, and European rapeseed futures were all down in overnight activity.
Canola already posted large losses on Monday, when US markets were closed for Memorial Day, and some follow-through speculative selling pressure contributed to Tuesday’s declines, according to participants.
Relatively favourable weather conditions for spring seeding and crop development across most of Western Canada were bearish as well.
However, there are also still enough areas of concern to keep some weather premiums in the futures. Ideas that the losses were looking overdone, as canola remains cheap compared to other oilseeds, helped limit the losses as well, said traders.
About 7,000 canola contracts had traded as of 8:45 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:45 CDT:
