By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 30 – Canola contracts on the ICE Futures Canada platform were weaker at 10:51 CDT Friday testing the key support level of C$460 per tonne in the July contract.
The market was following the declines seen in the Chicago soy complex, as well as Malaysian palm oil and European rapeseed futures overnight, analysts said.
The market’s bearish technical bias and the large Canadian supply situation were also responsible for some of the price softness.
Further downward pressure came from reports of improving conditions for planting and crop development across Western Canada.
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However, the weaker Canadian dollar, ideas that canola is undervalued compared to competing oilseeds and slow farmer selling tempered the declines.
The need to keep a weather premium built into prices, as there are still some worries about late spring planting, kept a firm floor under the market.
As of 10:51 CDT Friday, about 9,700 contracts had traded. Spreading was a feature of the activity.
Milling wheat, barley and durum were untraded following slight prices revisions after Thursday’s close.
Prices in Canadian dollars per metric ton at 10:51 CDT:
