By Terryn Shiells, Commodity News Service Canada
March 8, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were lower at 8:35 CST Friday, as sentiment that the market is overbought weighed on values, analysts said.
Profit-taking following recent advances and ahead of the weekend was also responsible for some of the downward price action.
A pickup in farmer selling in the cash market furthered the bearish tone, traders noted.
However, continued weakness in the value of the Canadian dollar helped to limit the declines, as did steady commercial demand.
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Strength seen in outside oilseed markets, including CBOT soybeans, Malaysian palm oil and European rapeseed also spilled over to underpin values.
Concerns about tight old crop canola supplies in Canada kept a firm floor under the market.
Activity was light, as traders were on the sidelines ahead of the release of the USDA’s latest supply and demand report at 11:00 CST Friday. Traders will pay most attention to the USDA’s South American production estimates, which will likely be the market driver for the day.
As of 8:35 CST Friday, about 1,430 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:35 CST:
