By Dwayne Klassen, Commodity News Service Canada
Winnipeg – September 17/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at 8:46 CDT, with the declines associated with the taking of profits after new contract highs were established on Friday and on the sharp sell-off seen in the CBOT soybean complex, market watchers said.
Losses overnight in European rapeseed futures contributed to some of the price weakness seen in canola. The Malaysian palm oil market was closed for a holiday.
Some additional selling in canola was linked to the arrival of beneficial rain in the soybean growing regions of Brazil heading into the planting season, brokers said.
Elevator company hedge selling, tied to steady farmer deliveries of canola into the cash pipeline during the weekend, also helped to fuel some of the declines seen by canola, traders said.
General firmness in the Canadian dollar was also an undermining price influence.
Underlying support in canola was coming from steady domestic crusher demand and the pricing of old export business. Continued concerns about lost yield potential, also tempered the downside in canola futures, brokers said.
A lot of the price action so far has consisted of spreading.
As of 8:46 CDT, about 9,363 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:46 CDT:
Futures Prices as of May 21, 2013
Prices are in Canadian dollars per metric ton