By Dave Sims, Commodity News Service Canada
WINNIPEG, October 1 – Canola contracts on the ICE Futures Canada platform were weaker at 10:40 CDT Thursday, as traders positioned themselves ahead of the release of Statistics Canada’s updated survey estimates. Most traders believe the StatsCan report will show larger supplies of canola than previously reported in the August report.
The November contract was initially stronger, climbing to a mark of C$481.90 before running out of momentum and plunging down to C$473. One trader noted it was the fourth day in a row canola had risen above the technical resistance but couldn’t hold it.
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“Every time you do this and can’t hold it, it doesn’t look good on the charts,” said the trader.
Weakness in US soybeans and a stronger Canadian dollar were also bearish for values.
The harvest continues to advance across Western Canada with better yields than expected, which was bearish for the market.
The Canadian dollar was also higher relative to its US counterpart which made canola less attractive to domestic crushers and foreign buyers.
However, farmer selling has been slow which underpinned the market.
Commercial buying supported prices as well.
US soyoil, Malaysian palm oil and European rapeseed futures have all been stronger which limited the losses.
Around 21,000 contracts had traded as of 10:40 CDT,
Thursday.
Milling wheat, barley and durum were all untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
