By Phil Franz-Warkentin, Commodity News Service Canada
June 24, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:42 CDT Monday, as declines in CBOT soyoil and other outside oilseed markets weighed on values.
Soybean oil was trading at new contract lows Monday morning, which was bearish for canola, said a broker. Malaysian palm oil and European rapeseed futures were also down in overnight activity.
Relatively favourable weather for crop development across western Canada was also said to be weighing on values, with the large production prospects in many areas encouraging some forward pricing from producers. However, there are also still enough areas of concern to keep some weather premiums in the market, said the broker.
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Sharp weakness in the Canadian dollar, which has now fallen by over three cents compared to its US counterpart over the past week, also helped limit the losses in canola. The softer currency helps crush margins improve and also makes exports more attractive.
Statistics Canada releases updated acreage estimates on Tuesday, June 25, and positioning ahead of the report was behind some of the activity on Monday, according to traders. Market participants are generally anticipating an upward revision to the canola area from the 19.13 million forecast in a previous report. Canadian farmers seeded 21.53 million acres of canola in 2012.
At 10:42 CDT, about 8,300 canola contracts had changed hands.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:42 CDT:
