By Dwayne Klassen, Commodity News Service Canada

Winnipeg – October 29/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 10:27 CDT Monday morning with the losses experienced in the outside oilseed sector behind the downward slide, market watchers said.

Losses were displayed overnight in Malaysian palm oil and European rapeseed futures. Sharp declines were also being posted by CBOT soybean and soyoil values.

A small pick up in elevator company hedge selling, tied to an increase in farmer deliveries of canola during the weekend, helped to weigh on canola futures, brokers said.

The favourable weather for the planting of the soybean crops in South American helped to generate some of the price weakness in canola.

The declines in canola were lagging those of the CBOT soybean sector, with concerns about tight supplies helping to temper the selling interest. Good commercial demand under the market, said to be pricing export sales and covering domestic crusher needs, also restricted the price weakness.

As of 10:27 CDT, about 4,924 canola contracts had traded. Of those contracts, spreading accounted for 3,462 of the trades.

Milling wheat, durum and barley contracts were unchanged and untraded.

Prices in Canadian dollars per metric ton at 10:27 CDT: