By Dwayne Klassen, Commodity News Service Canada
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at significantly lower price levels at 09:17 EDT Tuesday morning. The continued sell-off in the outside oilseed markets generated the losses experienced by canola, market watchers said.
CBOT soybean futures were sharply lower as traders continue to reduce risk exposure in the market. Midwest rains provide relief for at least a small portion of US crops. Rains moving through the northern Midwest are enough to make the large long position holders in the market nervous, analysts say.
Sharp losses were also posted in European rapeseed futures with new five week lows established in Malaysian palm oil in overnight activity.
The favourable growing conditions in western Canada for canola added to the bearish price sentiment. The swathing of canola crops in Manitoba was also an undermining price influence, brokers said.
Farmers also continue to be active sellers of canola into the cash pipeline, which is further undermining prices.
Macro-economic issues and the need to reduce risk by speculative accounts, also influenced some of the downward price action in canola, traders said.
A minor upswing in the value of the Canadian dollar Tuesday morning was also viewed as bearish for canola futures.
Some underlying support in canola was coming from light scale-down commercial demand, said to be covering old export business to Japan.
As of 9:17 EDT, there were 2,106 canola contracts traded.
As of 9:17 EDT, there were no milling wheat, durum or barley contracts traded.
Prices in Canadian dollars per metric ton at 9:17 EDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton