By Terryn Shiells, Commodity News Service Canada
WINNIPEG – Canola contracts on the ICE Futures Canada platform were softer at 10:40 CDT Friday, as spillover pressure from the weakness seen in Chicago soyoil and European rapeseed futures weighed on prices, analysts said.
The liquidation of long positions by speculators after the market broke above key resistance levels earlier in the week also continued to be bearish.
The large Canadian canola supply situation and improving conditions for planting in Western Canada also undermined prices.
Further downward pressure came from ideas that the 2014/15 US soybean crop will be off to a good start due to beneficial rains seen this spring, brokers added.
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However, continued ideas that canola is undervalued compared to other oilseeds and steady demand tempered the losses.
A slowdown in farmer selling, as they are focusing on spring field work and seeding, was also supportive.
Positioning ahead of the long weekend kept some caution in the futures. Canadian markets will be closed for Victoria Day on May 19, while US markets will be open.
As of 10:40 CDT Friday, about 11,000 contracts had traded.
Milling wheat, barley and durum were untraded following price revisions after the close on Thursday.
Prices in Canadian dollars per metric ton at 10:40 CDT:
