By Terryn Shiells, Commodity News Service Canada
Winnipeg, May 22 – Canola contracts on the ICE Futures Canada platform were weaker Thursday morning, undermined by profit taking following Wednesday’s gains, analysts said.
Reports that planting conditions are improving for farmers across Western Canada this week were also bearish.
Spillover pressure from the weakness seen in Malaysian palm oil futures overnight was also behind some of the downward price action.
The large Canadian canola supply situation continued to overhang the market.
However, spillover support from the gains seen in the Chicago soy complex and European rapeseed futures limited the losses.
Slow farmer selling and ideas that canola is undervalued compared to other oilseeds were also supportive.
As of 8:52 CDT Thursday, about 3,700 contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:52 CDT:
