|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:35 CDT Monday, following the declines in CBOT soybeans, traders said.
Most of the price weakness in the CBOT soybean complex was linked to pressure from the advancing harvest in the US, which is resulting in abundant nearby supplies, brokers said.
Profit-taking after canola futures set new contract highs on Friday also fuelled some of the downward price action.
Some chart-based long liquidation also put downward pressure on the CBOT soybean complex, which spilled over to weigh on canola values as well.
Declines seen in European rapeseed futures during overnight trade and the general firmness in the value of the Canadian dollar also added to the bearish price sentiment in canola.
Forecasts calling for beneficial rain ahead of the soybean planting season in South America also generated some of the price weakness in canola, analysts said.
However, concerns about lowered yield potential due to weather, insect and disease damage across western Canada helped to limit the losses in canola.
Spread trading was a feature at midday Monday, as spreading accounted for more than 5,000 contracts traded, brokers said. As of 10:35 CDT, about 14,500 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:35 CDT: