By Dave Sims, Commodity News Service Canada
WINNIPEG, March 23 – Canola contracts on the ICE Futures Canada platform were mixed at 10:50 CDT on Thursday, with the front-end contracts weighed down by fund selling and losses in US soybeans, while the more deferred contracts were taking strength from gains in soyoil.
Large soybean supplies from South America were pressuring the canola market.
Technical selling was also a feature, according to a trader in Winnipeg.
The unwinding of the July/November spread is a feature in the market,” he said. “Probably everybody is losing on it, it has put pressure on the May contract.”
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Oilseed acreage is expected to increase this spring, which was bearish.
Losses in Malaysian palm oil dragged on prices.
However, reports that China plans to bump up imports of oilseeds was bullish for the market.
Canada’s canola stocks are dwindling away and there are ideas the country may run out before the 2017 harvest, which underpinned prices.
About 14,500 canola contracts had traded as of 10:45 CDT.
Milling wheat, barley and durum were all untraded.
Prices in Canadian dollars per metric ton at 10:45 CDT:
