By Terryn Shiells, Commodity News Service Canada
Winnipeg, May 27 – Canola contracts on the ICE Futures Canada platform were sharply lower at 10:44 CDT Tuesday. The losses were linked to speculative money moving out of commodities, including canola, and into equities, analysts said.
Spillover pressure from the weakness seen in outside oilseed markets, including Chicago soybeans and soyoil futures, added to the bearish tone.
Improving weather conditions for seeding and crop development in Western Canada were also behind some of the weakness.
Sell-stops were hit on the way down and helped to exaggerate the declines, brokers noted.
However, continued ideas that canola remains undervalued compared to competing oilseeds tempered the declines.
As of 10:44 CDT Tuesday, about 14,600 contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:44 CDT:
