By Dwayne Klassen, Commodity News Service Canada
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 09:40 EDT Tuesday morning. Canola futures moved lower playing catch-up to the sharp declines posted in CBOT soybean values on Monday when the ICE Canada platform was closed in observance of a Civic Holiday, market watchers said.
Better than expected crop stabilizing rain in key US Midwest areas over the weekend weighed heavily on soybeans on Monday. However, soybean futures are showing some bounce Tuesday, which is curbing some of the selling pressure seen in canola, traders said.
Losses overnight in Malaysian palm oil and European rapeseed futures contributed to some of the bearish sentiment seen in canola Tuesday morning.
A firmer Canadian dollar against other foreign currencies, also was an undermining price influence, brokers said.
The advancing canola harvest on the Canadian prairies was also prompting some of the downward price action seen in the commodity.
The downside in canola was also being tempered by steady domestic crusher demand and some pricing of old export business by commercials.
Disease issues for canola in western Canada were also restricting the price weakness.
As of 9:40 EDT, there were 1,954 canola contracts traded.
As of 9:40 EDT, there were no milling wheat, durum or barley contracts traded.
Prices in Canadian dollars per metric ton at 9:40 EDT:
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton