By Phil Franz-Warkentin, Commodity News Service Canada
July 12, 2013
Winnipeg – ICE Canada canola contracts were posting modest losses Friday morning, as declines in outside oilseed markets and relatively favourable Canadian crop conditions weighed on values.
CBOT soyoil, Malaysian palm oil, and European rapeseed futures were all weaker on Friday, accounting for some spillover selling pressure in canola.
Good crop prospects across most of western Canada were also overhanging the futures, said participants. However, there are also still enough areas of concern to provide some underlying support. There were some worries in the market over heat stress given the recent heat and dryness in parts of the Prairies.
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Continued strength in the Canadian dollar, which was holding steady after climbing over a cent relative to its US counterpart on Thursday, also put some pressure on canola. The stronger Canadian currency cuts into crush margins and makes canola more expensive for international buyers.
About 1,600 canola contracts had traded as of 8:42 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Friday morning.
Prices in Canadian dollars per metric ton at 8:42 CDT:
