By Terryn Shiells, Commodity News Service Canada
March 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were slightly higher at 8:45 CDT Tuesday, as sentiment that Monday’s losses were overdone lifted values, analysts said.
A lack of significant farmer selling into the cash pipeline also helped canola values move to higher ground, as did strong commercial demand.
Concerns that Canadian canola planting will be delayed this spring because of colder temperatures, excessive snow and flooding worries, added to the bullish tone.
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However, the upswing in the value of the Canadian dollar helped to slow the gains, as did spillover pressure from the losses seen in Chicago soyoil and Malaysian palm oil.
Ideas that a record large South American soybean crop will soon flood the market, as their harvest is progressing quickly, also undermined canola values.
News that China is now allowing canola from Australia also put downward pressure on prices, as demand for Canadian canola could shift to Australia.
Activity was quiet, as traders are waiting to see what happens with Thursday’s USDA stocks and planting reports before making any big moves. As of 8:45 CDT, only about 240 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:45 CDT:
