By Terryn Shiells, Commodity News Service Canada
June 27, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were mixed Thursday morning, with only the nearby July contract experiencing any upward price action.
Old crop values moved higher in reaction to tight supply concerns. Support also came from traders exiting the contract before it expires, analysts said.
New crop futures were weaker, with generally good weather conditions for the development of western Canada’s canola crop behind much of the price weakness.
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A pick up in farmer selling, as they’re focusing on marketing now that seeding operations are complete, further weighed on values.
Technical based selling and the upswing in the value of the Canadian dollar put additional downward pressure on canola prices.
However, the need to keep a weather premium in the market, due to excessive moisture in some regions, limited the declines.
Some spill over support from the gains seen in the Chicago soybean complex also underpinned values.
The canola market could see a bounce later in the day as traders position themselves ahead of Friday’s USDA stocks and acreage reports, brokers noted.
As of 8:36 CDT, about 3,445 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged Thursday morning.
Prices in Canadian dollars per metric ton at 8:36 CDT:
