By Terryn Shiells, Commodity News Service Canada
May 22, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were narrowly mixed Wednesday morning, as the July contract was pressured by ideas that it’s overpriced compared to other oilseeds, analysts said.
Profit-taking following recent advances also undermined values, as did declining commercial and export demand. Buyers are turning to South America for oilseed supplies now that a large amount of their crop has come onto the market.
Improving weather in western Canada, which will benefit planting progress, further weighed on prices, as did talk that good moisture conditions have helped the canola crop get off to a good start.
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The canola market was also following the mixed activity seen in the Chicago soybean complex Wednesday morning.
Continued concerns about the tight Canadian canola supply situation and firmness in the cash market provided some support for prices.
Weakness in the value of the Canadian dollar further underpinned canola contracts, as it made the commodity less expensive to foreign buyers.
Activity was on the quiet side Wednesday morning. As of 8:28 CDT, only about 890 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:28 CDT:
