By Dwayne Klassen, Commodity News Service Canada
Winnipeg – September 11/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 10:39 CDT Tuesday morning. Declines in CBOT soybean and soyoil futures encouraged the downward price slide in canola with the advancing harvest operations across western Canada also an undermining price influence, market watchers said.
The liquidation of positions by a variety of market participants ahead of new supply/demand tables scheduled for release by the USDA on Wednesday, further weighed on canola futures, brokers said. Losses overnight in Malaysian palm oil also aided the push to lower ground.
The continued upswing in the value of the Canadian dollar added to the bearish price sentiment as did steady farmer deliveries of new crop canola into the cash pipeline, traders said.
The losses in canola were restricted by scale down buying by commercials. Some of that interest was covering old export business as well as some domestic processor needs.
Continued indications that canola yields were falling well below normal levels as the harvest of the crop continues in Alberta and Saskatchewan, helped to temper some of the selling interest in the commodity.
Spreading was a minor feature of the activity seen in canola.
As of 10:39 CDT, about 4,450 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:39 CDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton