By Phil Franz-Warkentin, Commodity News Service Canada
May 26, 2014
Winnipeg – Canola contracts on the ICE Futures Canada platform were weaker at 10:50 CDT Monday, as good weather conditions across Western Canada weighed on values.
With the US markets closed Monday for the Memorial Day long weekend, activity in the canola market was very quiet. However, bids and offers were pointing to a softer opening in the CBOT grains and oilseeds when activity resumes there. Malaysian palm oil and European rapeseed futures were also down in overnight activity.
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Relatively favourable seeding conditions across most of Western Canada over the weekend put some pressure on canola values, according to traders. The large old crop supplies still overhanging the market contributed to the declines as well.
However, there is still enough uncertainty over new crop production to keep some weather premiums in the futures, which tempered the declines. Scale-down exporter and domestic crusher pricing was also supportive, as canola remains attractively priced compared to other oilseeds, according to participants.
Fewer than 1,500 canola contracts had traded as of 10:50 CDT, with the July/November spread accounting for the bulk of the activity.
Milling wheat, durum, and barley futures were untraded and unchanged, after seeing some price revisions following Friday’s close.
Prices in Canadian dollars per metric ton at 10:50 CDT:
