By Jade Markus, Commodity News Service Canada
WINNIPEG, May 12 – ICE Canada canola contracts were weaker on Thursday, pressured by increased farmer-selling due to higher prices.
“We’re heavy in here, farmers have been good sellers after this spike,” said one Winnipeg-based trader.
The market is also still catching up after Tuesday’s rally, he added.
Losses in Chicago Board of Trade soybeans were providing spill over pressure to canola.
“And then you’ve got the bean oil kind of dripping lower here,” the trader said.
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The Canadian dollar gained ground against its US counterpart on Thursday, which was bearish for canola, as it makes the commodity less appealing to international buyers.
Fund-buying is still a feature in the market, which limited losses, but the bias is to the downside, which added pressure to the market.
“I think everyone just kind of stopped looking at the weather, yes Saskatchewan has got some good rains, but most of Alberta is on the extremely dry side,” the trader said.
He added that pockets of land in Manitoba are also dry, and some growers across the Prairies have stopped seeding canola, while waiting for rain.
About 16,176 contracts had traded as of 10:26 CDT.
Milling wheat, durum and barley futures were all untraded and
unchanged.
Prices in Canadian dollars per metric tonne at 10:26 CDT:
