By Dave Sims, Commodity News Service Canada
WINNIPEG, October 10 – Canola contracts on the ICE Futures Canada platform were lower at 10:30 CDT Friday on choppy trading, following the soy complex and breaking below the psychologically important C$400.00 per tonne mark in the November contract.
Investors were selling contracts ahead of the USDA’s monthly crop production and supply/demand report. That is scheduled to be released at 11:00 CDT.
“We’re going to see big (oilseed) crops, so there’s some selling ahead of the report, everything is under some degree or pressure and canola is tagging along with the soy markets,” an analyst said.
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The perception is also growing that the 2014/15 canola crop might keep supplies at a comfortable lower, he said.
European rapeseed futures were also lower which contributed to the declines.
However, wet weather across parts of North America this week has slowed harvest activity in certain regions, which limited the losses.
The Canadian dollar was slightly lower against its US counterpart, which provided some support to values. The analyst noted the decline of the loonie over the past few months has helped cushion canola’s descent on the markets.
Around 24,000 contracts had traded as of 10:30 CDT, Friday.
Prices in Canadian dollars per metric ton at 10:30 CDT:
