By Terryn Shiells, Commodity News Service Canada
March 19, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were lower at 8:43 CDT Tuesday, undermined by pressure from the advancing soybean harvest in South America. The harvest was said to be more than half way done, according to analysts.
Expectations that South America will produce a record large 145 to 147 million tonnes of soybeans this year added to the bearish tone.
Losses seen in the CBOT soybean complex Tuesday morning also spilled over to weigh on canola values.
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Ideas that canola could easily become overpriced compared to other oilseeds if values get pushed higher fuelled some of the declines as well.
Expectations that North America will produce large canola and soybean crops in 2013/14 also sparked some of the selling that took values to lower ground.
However, the downswing in the value of the Canadian dollar helped to slow the losses, as it made canola more attractive to foreign buyers.
Steady commercial demand and continued concerns about tight old crop canola supplies also tempered the declines, according to participants.
Activity was on the light side Tuesday morning. As of 8:43 CDT, about 630 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:43 CDT:
