By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 09:23 EDT Monday morning. Much of the downward price action seen in canola reflected revised weather outlooks for the US soybean belt and some fresh macro-economic issues, market watchers said.

CBOT corn, soybean and wheat futures came under heavy downward pressure overnight amid profit-taking as revised US weather forecasts do not appear as stressful as previously expected and given heightened euro-zone concerns, specifically in Spain.

Declines overnight in Malaysian palm oil and European rapeseed futures helped to influence the price weakness in canola.

The taking of profits and sentiment that canola futures were overbought and in need of a downward correction also helped to push prices down, traders said.

Speculative market players were also taking money off the table given once again deteriorating conditions and sentiment in the outside stock, energy and metal markets.

Good weather for the development of the canola crops in western Canada added to the bearish sentiment in canola, brokers said. Steady farmer deliveries into the cash pipeline also undermined values.

Scale down commercial buying helped to slow the declines.

As of 9:23 EDT, there were 1,224 canola contracts traded.

As of 9:23 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:23 EDT: