By Terryn Shiells, Commodity News Service Canada
March 22, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were slightly lower at 8:47 CDT Friday, as profit-taking following Thursday’s gains and ahead of the weekend weighed on values, analysts said.
News that China is allowing imports of Australian canola again, after a three year ban, also undermined values, as some of the demand for Canadian canola is now shifting to Australia.
Some spillover pressure from the losses seen in the Chicago soy complex added to the bearish tone.
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Pressure from the advancing harvest of soybeans in South America also weighed on values, as a large amount of their crop should come onto the market soon.
Expectations that North American oilseed production in 2013/14 will be larger than the previous year fuelled some of the declines as well.
However, slow farmer selling and steady commercial demand helped to slow the losses, as did concerns about delayed canola planting in Canada this spring.
Positive technical signals kept a firm floor under the market, according to participants.
Trade was very light Friday morning. As of 8:47 CDT, only about 290 canola contracts had traded. Activity is expected to be choppy for most of the day, as traders position themselves ahead of next week’s USDA planting and stocks reports.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:47 CDT:
