By Terryn Shiells, Commodity News Service Canada
August 27, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker Tuesday morning, undermined by profit taking following Monday’s rally, analysts said.
Ideas that Monday’s advances were overdone and that a downward correction was needed further undermined values.
A pickup in farmer selling into the cash pipeline following Monday’s sharp advances was also helping to generate some of the downward price slide.
Generally favourable growing conditions in Western Canada and expectations that the Canadian canola crop will be very large this year added to the bearish tone.
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However, continued worries about dry weather harming US soybean crops limited the declines, as did spillover support from the gains seen in outside oilseed markets, including Malaysian palm oil and Chicago soyoil.
The need to keep a weather premium built into prices and weakness in the value of the Canadian dollar kept a firm floor under the market.
As of 8:37 CDT, about 5,880 canola contracts had traded.
Barley and durum futures were untraded and unchanged. Milling wheat futures were also untraded and unchanged following some price revisions by the Exchange after the close on Monday.
Prices in Canadian dollars per metric ton at 8:37 CDT:
