By Terryn Shiells, Commodity News Service Canada
Winnipeg, Feb. 11 – Canola contracts on the ICE Futures Canada platform were weaker, falling to fresh contract lows Tuesday morning.
Follow-through selling after Monday’s weaker close was responsible for some of the downward price action, analysts said.
Spillover pressure from the declines seen in outside oilseeds, including the Chicago soy complex, Malaysian palm oil and European rapeseed futures, added to the bearish tone.
Expectations of a large South American soybean crop and chart-based selling further undermined prices.
Large Canadian canola supplies and ongoing issues moving the crop out of Western Canada continued to overhang the market.
However, oversold price sentiment and ideas that canola is undervalued compared to other oilseeds helped to limit the declines.
As of 8:40 CST Tuesday, about 4,140 contracts had traded.
Milling wheat, durum and barley futures were untraded following price revisions to wheat after the close on Monday.
Prices in Canadian dollars per metric ton at 8:40 CST:
