By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 15 – Canola contracts on the ICE Futures Canada platform were weaker at 10:43 CDT Thursday, undermined by profit taking amid ideas that the market’s recent rally was overdone, analysts said.
The large Canadian canola supply situation and a pickup in farmer selling at the highs were also responsible for the price softness.
Spillover pressure from the weakness seen in Chicago soyoil futures and ideas that weather conditions are becoming more favourable for seeding in Western Canada added to the bearish tone.
However, ideas that canola is still undervalued compared to other oilseeds helped to limit the downside.
Some spillover support also came from the overnight advances seen in Malaysian palm oil and European rapeseed futures.
As of 10:43 CDT Thursday, about 7,900 contracts had traded.
Milling wheat, barley and durum were untraded following price revisions after the close on Wednesday.
Prices in Canadian dollars per metric ton at 10:43 CDT:
