By Phil Franz-Warkentin, Commodity News Service Canada
June 26, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were sharply weaker at 10:50 CDT Wednesday, as increased farmer selling and spillover from the weakness in many outside markets weighed on values.
With seeding operations finished for the year, farmers in western Canada were said to be turning their attention back to pricing both old and new crop canola, according to a broker. The increased contracting in the country found its way into the futures to weigh on values.
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Losses in gold and crude oil, along with the softer tone in CBOT soyoil, added to the weaker tone in canola, according to participants.
Relatively favourable weather conditions for crop development across most of western Canada weighed further on values, although there are also still enough areas of concern to keep some weather premiums in the market.
Scale-down end user demand helped limit the losses as well, said traders. Tight old crop supplies were another supportive influence.
At 10:50 CDT, about 8,000 canola contracts had changed hands, with spreading only a very small feature.
Milling wheat, durum, and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:50 CDT:
