By Terryn Shiells, Commodity News Service Canada
Winnipeg, March 31 – Canola contracts on the ICE Futures Canada platform were lower Monday morning, undermined by follow-through selling on Friday’s weaker close, analysts said.
A pickup in farmer selling, as they take advantage of a recent rally ahead of spring seeding, also put downward pressure on prices.
Expectations of large carryout stocks of Canadian canola in 2013/14 (Aug/Jul) added to the bearish tone, as did the upswing in the value of the Canadian dollar.
However, continued ideas that canola is undervalued compared to other oilseeds helped to limit the downside.
Activity was on the quiet side as traders were being cautious ahead of the release of the USDA’s prospective plantings and stocks reports at 11:00 CDT.
As of 8:43 CDT Monday, about 950 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions after the close on Friday.
Prices in Canadian dollars per metric ton at 8:43 CDT:
