By Terryn Shiells, Commodity News Service Canada
WINNIPEG, Sept. 10 – Canola contracts on the ICE Futures Canada platform were lower at 10:48 CDT Wednesday, as some traders are betting that frost in Western Canada this week won’t do significant damage to canola crops, analysts said.
Some of the selling was also linked to ideas that Canadian canola production prospects are looking better than the 13.9 million tonnes StatsCan predicted earlier this summer.
Farmer liquidation, positioning ahead of Thursday’s monthly USDA report and the unwinding of canola/soy spreads were also bearish.
However, some spillover support came from the advances seen in Chicago soybean futures.
The need to keep a weather premium built into the market, as there is still a possibility of frost damage to some crops as temperatures are forecast to dip down to minus five and six degrees Celsius during the week, was also supportive.
As of 10:48 CDT Wednesday, about 3,400 contracts had traded.
Milling wheat, barley and durum futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:48 CDT:
