By Dwayne Klassen, Commodity News Service Canada

Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 09:19 EDT Tuesday morning. The taking of profits by a variety of market participants along with declines in the outside oilseed markets helped to encourage the downward price slide, market watchers said.

Losses were seen early Tuesday in CBOT soybean and soyoil futures, which helped to spark some selling in canola, brokers said. The losses seen overnight in European rapeseed and Malaysian palm oil futures helped to augment the price weakness.

Steady farmer deliveries of canola into the cash pipeline added to the bearish sentiment in canola. Much of the movement was linked to farmers taking advantage of recent strength in the cash market and emptying out old crop supplies out of bins to make room for new crop stocks, analysts said.

Mostly favourable weather conditions for the development of canola crops in western Canada was also an undermining price influence.

Underlying support in canola, however, continued to stem from the hot and dry weather forecasts for the main growing regions of the US soybean belt, traders said.

Light commercial demand, said to be pricing old export business also provided some underlying support.

As of 9:19 EDT, there were 1,913 canola contracts traded.

As of 9:19 EDT, there were no milling wheat, durum or barley contracts traded.

Prices in Canadian dollars per metric ton at 9:19 EDT: