By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 15/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at steady to weaker levels with losses in the outside oilseed sector generating the downward price slide, market watcher said.
Most of the selling interest was stimulated by the sharp losses seen overnight in the US soybean complex. Losses were also experienced in Malaysian palm oil and European rapeseed futures overnight, which contributed to the declines in canola.
Chart based liquidation orders from speculative and commodity fund accounts helped to fuel the bearish sentiment in canola, brokers said.
Some additional weakness in canola was being stimulated by the improved moisture conditions for the planting of the soybean crops in South America, traders said. The USDA’s report last week, showing a jump in US soybean production, helped to weigh on canola as well.
Deteriorating crush margins and reduced domestic processing buying interest contributed to the price weakness in canola.
Some underlying support came from the reluctance of farmers to deliver canola into the cash pipeline. The pricing of old export business at the lows added some minor support.
As of 8:27 CDT, about 858 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:27 CDT:
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton