By Terryn Shiells, Commodity News Service Canada
May 30, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were lower Thursday morning, following the losses seen in the Chicago soybean complex.
Forecasts calling for drier weather in US soybean growing regions were also bearish, as were ideas that some acres originally intended for corn could move into soybeans as it gets closer to being too late to plant corn.
Spill over pressure from the weakness seen in Malaysian palm oil and European rapeseed overnight further weighed on canola values.
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Some of the selling seen in canola was also linked to talk that farmers have made good seeding progress recently and that the crops are off to a good start.
Competition from the large South American soybean crop, which is now flooding the market, fuelled some of the declines as well.
However, continued concerns about the tight Canadian canola supply situation limited the declines, as did slow farmer selling.
The downswing in the value of the Canadian dollar was also supportive, as it made canola more attractive to foreign buyers.
As of 8:36 CDT, about 1,640 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:36 CDT:
