By Phil Franz-Warkentin, Commodity News Service Canada
Feb. 21, 2013
Winnipeg – ICE Canada canola futures were weaker Thursday morning, as the profit-taking that came forward to take values off their highs late Wednesday continued in the overnight session.
Malaysian palm oil, European rapeseed, and CBOT soyoil were all softer in overnight trade as well, although CBOT soybeans were narrowly mixed. Losses in most outside commodity and equity markets were also overhanging the canola market.
Expectations that large South American soybean crops will soon be displacing North American oilseeds in the international market put some pressure on canola, according to participants. However, logistics issues in Brazil and weather concerns in Argentina were still providing some nearby support on the other side.
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The Canadian dollar continued to weaken on Thursday, helping limit the declines in canola. Tightening supplies and the need to ration demand going forward helped underpin canola as well.
About 4,400 canola contracts had traded as of 8:47 CST, with inter-month spreading a feature of the activity.
Milling wheat, durum, and barley futures were all untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:47 CST:
