By Terryn Shiells, Commodity News Service Canada
September 10, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT Tuesday, undermined by spillover pressure from the losses seen in the Chicago soy complex, analysts said.
Some of the weakness in Chicago soybeans and soyoil was linked to positioning and nervousness ahead of Thursday’s USDA crop production report.
Pressure from advancing harvest activities in Western Canada was bearish for canola, as were expectations that the Canadian crop will be record large.
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Some of the selling was also technical in nature, as the November canola contract settled below key support of C$500 per tonne the last two trading days.
The upswing in the value of the Canadian dollar further weighed on values, as did forecasts calling for beneficial warm weather in Western Canada.
However, the need to keep a weather premium built into prices limited the losses, as did ideas that canola is undervalued compared to other oilseeds.
As of 10:40 CDT Tuesday, about 11,710 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following price revisions after the close on Monday.
Prices in Canadian dollars per metric ton at 10:40 CDT:
