By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 8 (CNS Canada) – ICE Futures Canada canola contracts were posting small losses Thursday morning, although activity was thin and choppy as participants squared positions ahead of the release of the United States Department of Agriculture’s monthly supply/demand report.
The USDA data will be out at 11:00 CST, and adjustments to the South American production estimates could sway the North American oilseed markets. Dry weather in Argentina has cut into the soybean yield prospects there, although Brazilian production could be revised higher.
Increased farmer selling and a shift in the nearby technical signals added to the early softness in canola, according to participants.
However, canola futures have already seen a large correction off of nearby highs and may be starting to look overdone to the downside.
The Canadian dollar was slightly firmer in early activity, but was still looking weak overall after its recent decline relative to its U.S. counterpart.
About 4,000 canola contracts had traded as of 8:55 CST.