By Terryn Shiells, Commodity News Service Canada
Winnipeg, May 28 – The ICE Futures Canada canola market was posting small losses at midsession Thursday, as weakness in Chicago soybean futures weighed on values, analysts said.
The large global oilseed supply situation put further downward pressure on values.
Canola futures were also undermined by technical based selling, as the July contract ran into resistance at the C$470 per tonne level.
Though, weakness in the Canadian dollar and continued quiet farmer selling in Western Canada were supportive.
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An uptick in speculative buying and strength in Chicago soyoil futures were limiting the declines as well.
Traders are also still concerned about dry conditions harming recently planted canola crops, with some regions of Alberta not seeing any precipitation since their last snow fall, according to a broker. While there are some light rains in the forecast for Western Canada, the heaviest amounts are expected to hit southern Manitoba, which is the least in need of rain within Western Canada.
As of 10:43 CDT Thursday, about 8,200 contracts traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:43 CDT:
