By Terryn Shiells, Commodity News Service Canada
Canola contracts on the ICE Futures Canada platform were fractionally firmer at 10:45 CDT Thursday, finding some spillover support from the gains seen in Chicago soyoil and Malaysian palm oil futures, analysts said.
Some short covering following Wednesday’s sharp losses, and ahead of Friday’s USDA supply and demand report also underpinned values.
Ongoing worries about flooding in eastern Saskatchewan and western Manitoba were supportive, as were reports that the Peace River district in Alberta could use more rain.
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Slow farmer selling, as they’re waiting to be more confident in the new crop, was bullish as well.
However, weakness in soybean futures spilled over to weigh on prices, limiting this upside.
Reports that Canadian canola crops outside of the areas that are too dry, or too wet, are looking good were also bearish.
Further downward pressure came from slowing demand, as canola is no longer cheap relative to competing oilseeds, traders said.
As of 10:45 CDT Thursday, about 9,050 contracts had traded.
Milling wheat, barley and durum were untraded following slight price revisions after Wednesday’s close.
Prices in Canadian dollars per metric ton at 10:45 CDT:
