By Terryn Shiells, Commodity News Service Canada
Winnipeg, June 5 – The ICE Futures Canada canola market was up slightly Friday morning amid choppy activity as traders evened positions ahead of the weekend, analysts said.
The market’s technical bias shifted higher after Thursday’s sharp gains, which was supportive, as was weakness in the Canadian dollar.
Spillover buying also came from gains in European rapeseed and Chicago soyoil futures in early and overnight activity.
Ongoing uncertainty around the size of the 2015/16 Canadian canola crop, due to recent unfavourable frost events and dry weather, also provided some support. There are some worries that farmers won’t be able to source canola seed in time to re-plant their fields.
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However, some spillover pressure also came from the weakness in Chicago soybeans and Malaysian palm oil futures.
Generally good conditions for US soybeans, the large global oilseed supply situation and talk that the Canadian canola crop still has the potential to be large if weather conditions turn more favourable, were also bearish.
As of 8:39 CDT Friday, about 6,300 contracts had traded.
Milling wheat, durum and barley futures were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:39 CDT:
