|By Terryn Shiells, Commodity News Service Canada|
|August 7, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:40 CDT Tuesday, catching up with the declines seen in the CBOT soybean complex on Monday, when Canadian markets were closed for a Civic Holiday.
The declines in the CBOT soybean complex were due to better than expected precipitation which reduced some of the stress that was put on soybean crops by drought-like conditions in the US Midwest, market watchers said.
Weakness seen in Malaysian palm oil and European rapeseed during overnight trade was also responsible for some of the downward price slide.
Pressure from the looming canola harvest in western Canada further undermined canola values, market watchers said.
The stronger Canadian dollar versus its US counterpart also helped canola move to the downside as it made the commodity more expensive for foreign buyers.
However, concerns about disease damage in some growing regions across western Canada limited the declines, participants said.
The market was quiet at midday Tuesday, as many traders are standing on the sidelines ahead of the USDA supply and demand report on Friday, traders said. The report is expected to cause a lot of tension in the US market, which will spillover to influence canola.
As of 10:40 CDT, about 6,200 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
|Nov||606.20||dn 11.80 Jan 609.40 dn 11.70 Mar 610.20 dn 11.70 Milling Wheat Oct 301.00 unch Dec 308.00 unch Durum Oct 311.50 unch Dec 316.00 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 23, 2013
Prices are in Canadian dollars per metric ton