By Terryn Shiells, Commodity News Service Canada
WINNIPEG, August 1 – Canola contracts on the ICE Futures Canada platform were sharply lower at 10:36 CDT Friday, following the large losses seen in Chicago soybean and soyoil futures, analysts said.
Spillover pressure also came from weakness in European rapeseed futures.
An estimate calling for an average western Canadian canola yield of about 34.3 bushels an acre from CWB’s crop tour was also bearish, as it was in line with the long-term average yield despite flooding problems in some parts of the Prairies this year.
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The liquidation of long positions ahead of the long weekend, as Canadian markets will be closed on Monday, added to the bearish tone.
However, recent softness in the value of the Canadian dollar limited the losses, as it made canola more attractive to crushers and exporters.
Slow farmer selling, as they wait for better prices and more confidence in their new crop, was also supportive.
As of 10:36 CDT Friday, about 9,700 contracts had traded.
Milling wheat, barley and durum futures were untraded after the Exchange adjusted wheat values following Thursday’s close.
Prices in Canadian dollars per metric ton at 10:36 CDT:
