By Terryn Shiells, Commodity News Service Canada
May 29, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were lower Wednesday morning, with profit-taking following Tuesday’s rally behind most of the downward price action, analysts said.
Some of the selling was also linked to reports that oilseed farmers in North America have made good planting progress recently, and that the crops are off to a good start so far.
Strong competition from the South American market, as their oilseed supplies are now more readily available, put further downward pressure on values.
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Canola prices also moved lower in reaction to spill over pressure from the losses seen in the Chicago soy complex.
However, general weakness in the value of the Canadian dollar and tight old crop supply concerns limited the declines.
Continued concerns about planting delays for canola and soybeans in North America, due to recent wet weather, were also supportive.
Slow farmer selling and steady commercial demand kept a firm floor under the canola market.
As of 8:33 CDT, about 1,550 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:33 CDT:
