|By Phil Franz-Warkentin, Commodity News Service Canada|
|Dec. 12, 2012|
|Winnipeg – ICE Canada canola futures were weaker Wednesday morning, as follow-through selling on Tuesday’s declines weighed on prices.
Overnight declines in Malaysian palm oil futures, which hit their lowest levels in a month, along with weakness in European rapeseed and CBOT soybean futures contributed to the declines in canola, according to participants.
The firm Canadian dollar was another bearish factor in the canola market, as were the relatively favourable crop conditions for soybeans in South America, said traders.
A lack of significant farmer selling did help temper the declines. On the other side, solid end user demand also remained supportive.
From a technical perspective, recent price activity was said to have encouraged some speculative selling as the January contract backed away from the C$600 per tonne level. However, support to the downside was holding around the C$590 per tonne level in overnight activity.
About 1,600 canola contracts had traded as of 8:33 CST.
Milling wheat, durum, and barley futures were all untraded and unchanged Wednesday morning.
Prices in Canadian dollars per metric ton at 8:33 CST:Price Change
Canola Jan 590.70 dn 2.30
Mar 587.50 dn 2.30
May 585.20 dn 2.90
Milling Wheat Mar 290.50 unch
May 293.50 unch
Durum Mar 316.00 unch
May 320.00 unch
Barley Mar 248.00 unch
May 249.00 unch
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton