By Dave Sims, Commodity News Service Canada
WINNIPEG, June 4 – ICE Canada canola contracts were lower on choppy trading Thursday morning in sympathy with US soyoil.
Values were also consolidating after touching on newfound highs that were reached during yesterday’s session. Farmer selling contributed to the losses while canola ran into some technical resistance as well.
Large world supplies of soybeans cast a bearish tone over the marketplace.
However, gains in US soybeans, soymeal and Malaysian palm oil futures limited the losses.
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The Canadian dollar was weaker against its US counterpart which made canola more attractive on the international market.
Frost damage in Western Canada still has to be assessed, however one analyst pegged Canadian canola production in the 14 million metric tonne range. That is down significantly from the latest projection from Informa Economics which had estimated production at 15.16MMT. Excessive dryness across much of Western Canada was also bullish for values.
About 6,000 canola contracts had traded as of 8:45 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:45 CDT:
