|By Terryn Shiells, Commodity News Service Canada|
|August 17, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at slightly lower price levels at 10:35 CDT Friday, as the market was catching up to the losses seen in CBOT soybeans on Thursday, analysts said.
Canola futures finished firmer than soybeans at the close on Thursday and needed to move lower at midday Friday to catch up with the US market, traders said.
Pressure from the advancing harvest in western Canada and increased sales from farmers into the cash pipeline also helped canola move lower.
Firmness in the Canadian dollar, as it stayed above parity with its US counterpart also added to the bearish sentiment, as it made canola more expensive for foreign buyers.
Weather forecasts calling for prolonged cooler temperatures and precipitation in the main soybean growing regions across the US Midwest were also an undermining factor in the canola market, participants said.
However, small advances during overnight trade in Malaysian palm oil helped to slow the declines.
Speculative buying interest and steady domestic demand also limited the losses in canola, analysts said.
The market was fairly “choppy” amidst light trade at midday Friday. Traders were sitting on the sidelines, waiting for more clarity about the US and Canadian crop situations before getting more involved in the market, brokers said.
As of 10:35 CDT, about 2,145 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
|Nov||610.80||unch Jan 615.00 dn 0.20 Mar 614.90 dn 2.40 Milling Wheat Oct 292.40 unch Dec 298.00 unch Durum Oct 299.20 unch Dec 303.70 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton