By Terryn Shiells, Commodity News Service Canada
Winnipeg, June 5 – Canola contracts on the ICE Futures Canada platform were slightly weaker amid choppy activity Thursday morning, following the losses seen in Chicago soyoil futures, analysts said.
Spillover pressure from the losses seen in Malaysian palm oil futures overnight added to the bearish tone, as did the large Canadian canola supply situation.
The technical bias continues to be pointed lower for canola, which further undermined values, as did generally favourable growing conditions for crops in North America.
However, slow farmer selling, as they continue to focus on spring fieldwork, limited the downside, as did ideas that canola is undervalued compared to other oilseeds.
Some support also came from the need to keep a weather premium built into prices, as some Prairie growing areas may not get planted due to wet conditions.
As of 8:35 CDT Thursday, about 1,800 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions after Wednesday’s close.
Prices in Canadian dollars per metric ton at 8:35 CDT:
