By Dwayne Klassen, Commodity News Service Canada Inc.

Winnipeg – July 26/12 – Canola futures on the ICE Canada trading platform ended Thursday’s session on the defensive. Activity was described as consolidative in nature with the losses in the outside oilseed markets encouraging some of the downward price action seen in canola, industry watchers said.

Significant declines were exhibited by CBOT soybean and soyoil values Thursday with sharp declines also experienced overnight in Malaysian palm oil and European rapeseed futures.

The declines in canola were also stimulated by the mainly favourable weather conditions for the development of the canola crops in western Canada. Brokers noted that canola was maturing extremely quickly in view of the warm conditions and timely precipitation.

The pricing of both old and new crop canola by farmers in western Canada also added to the bearish price sentiment.

The upswing in the value of the Canadian dollar and chart-based liquidation orders from a variety of market participants, also was viewed as an undermining price influence, brokers said.

The absence of domestic crusher demand also was tied to the weak price tone in canola.

Some minor commercial demand, thought to be pricing old export business to Japan, did help to slow the price drop in canola, brokers said.

There were an estimated 10,807 canola contracts traded Thursday, down from the 22,913 contracts that changed hands during the previous session. Of the contracts traded, 3,328 were spread related.

There were no milling wheat contracts traded but ICE Canada lowered values. No durum or barley contracts were traded during the session.

Prices are in Canadian dollars per metric ton.