By Dave Sims, Commodity News Service Canada
WINNIPEG, July 6 – Canola contracts on the ICE Futures Canada platform were weaker at 10:45 CDT on Wednesday, tracking losses in the US soy complex.
Fund liquidation was also a key feature of the early activity, according to a Winnipeg-based analyst.
“Funds coming into this week were huge,” he said, “now they’re getting out of it.”
Malaysian palm oil and European rapeseed futures were also lower which weighed on values.
Weather conditions have been favorable for the development of canola and soybeans in North America.
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However, the Canadian dollar was lower relative to its US counterpart which made canola more attractive to out-of-country buyers.
The International Grains Council has pegged canola/rapeseed stocks at a 13-year low which was bullish for values, according to a report.
There are ideas canola is underpriced compared to other oilseeds.
About 10,700 canola contracts had traded as of 10:45 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:45 CDT:
Price Change
Canola Nov 477.40 dn 5.70
Jan 483.80 dn 5.60
Mar 489.80 dn 5.50
Milling Wheat Oct 214.00 unch
Dec 218.00 unch
Durum Oct 283.00 unch
Dec 285.00 unch
Barley Oct 166.00 unch
Dec 166.00 unch
