By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 11/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:27 CST Tuesday morning with the losses in CBOT soybean complex and the general strength of the Canadian dollar stimulating the downward price action, market watchers said.
Activity in canola was seen as choppy with spreading accounting for the majority of the volume total.
The absence of any major surprises in the updated supply/demand reports from the USDA Tuesday morning helped to keep trade in canola on the lighter side, brokers said. However, some selling was linked to the USDA maintaining its soybean production estimate for Brazil and Argentina despite reported weather issues.
Some of the declines in canola also reflected the losses seen overnight in Malaysian palm oil.
Some chart-related liquidation orders from a variety of market participants helped to put canola futures on the defensive.
The losses in canola were being slowed by scale down commercial buying interest, which was believed to be covering light export commitments, traders said. Sluggish farmer selling of canola into the cash market also tempered some of the downward price action.
As of 10:27 CST, about 6,712 canola contracts had traded. Of those contracts, spreading accounted for 4,696 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:27 CST:
Futures Prices as of May 24, 2013
Prices are in Canadian dollars per metric ton