|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at sharply lower price levels at 10:41 CDT Tuesday, following weakness in outside oilseed markets, analysts said.
CBOT soybean futures were sharply lower as rainfall in the northern regions of the US Midwest fuelled the selling in the CBOT soybean market. The precipitation comes at a critical time for the development of the soybeans, and may help the crops see some recovery from a recent drought.
Sharp declines seen in European rapeseed and Malaysian palm oil futures overnight also generated some of the price weakness, market watchers said.
Global economic uncertainty also caused a risk-off sentiment in all commodities, including canola, traders said. Investors are concerned that Europe’s economy is in trouble, as high bond yields indicated Spain’s banks are deeper in debt than originally anticipated.
Generally good weather for the development of canola across Canadian growing regions was also responsible for some of the downward price slide.
Increased farmer selling, as they make room for new crop, and a decline in domestic crusher demand also added to the bearish price sentiment, participants said.
However, weakness in the Canadian dollar tempered the declines, as it made the commodity more attractive to foreign buyers.
As of 10:41 CDT, about 7,430 canola contracts had traded.
Durum, barley and milling wheat were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:41 CDT: