|By Phil Franz-Warkentin, Commodity News Service Canada|
|Oct. 10, 2012|
|Winnipeg – ICE Canada canola futures were weaker Wednesday morning, as a softer tone in CBOT soybeans and other outside oilseed markets weighed on values.
The USDA releases updated production estimates on Thursday, and the pre-report positioning keeping the bias to the downside in soybeans was also accounting for some of the selling pressure in canola, according to participants.
Record palm oil production in Malaysia in the month of September was also bearish for the oilseed markets in general, said an analyst.
Ideas that canola was overpriced added to the softer tone, as crush margins have deteriorated over the past month.
A lack of significant farmer selling did provide some underlying support, said traders. Concerns over Canada’s smaller canola crop, as reported by Statistics Canada last week, were also underpinning the futures as the market will need to work to ration demand going forward.
About 1,100 canola contracts had traded as of 8:44 CDT.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:44 CDT:Price Change
Canola Nov 608.20 dn 3.00
Jan 607.50 dn 2.80
Mar 602.50 dn 3.80
Milling Wheat Oct 290.50 unch
Dec 295.70 unch
Durum Oct 308.30 unch
Dec 312.80 unch
Barley Oct 245.00 unch
Dec 250.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton