By Terryn Shiells, Commodity News Service Canada
August 27, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were slightly lower at 10:42 CDT Tuesday, consolidating following Monday’s sharp rally, analysts said.
Profit taking and a pickup in farmer selling following yesterday’s sharp move to the upside put some downward pressure on values.
Expectations that the Canadian canola crop will be very large this year due to favourable growing conditions seen recently were also bearish.
Some of the selling was also linked to ideas that Monday’s advances were overdone and a downward correction was needed.
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However, spillover support came from the advances seen in Chicago soybeans and Malaysian palm oil and limited the declines.
Continued worries about dry weather in the US harming soybean crops were bullish, as was the need to keep a weather premium built into prices.
Volume was on the larger side at midday Tuesday. As of 10:42 CDT, about 18,405 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged following some price revisions by the Exchange after the close on Monday.
Prices in Canadian dollars per metric ton at 10:42 CDT:
