|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:41 CDT Monday, following weakness seen in outside oilseed markets, analysts said.
Weakness in the CBOT soybean complex, as revised weather outlooks sparked most of the selling, weighed on canola values.
Some of the price weakness seen in the CBOT soybean complex was also due to the liquidation of long positions, market watchers said.
Declines seen in European rapeseed and Malaysian palm oil overnight were also bearish for canola, traders said. Weakness in crude oil values also weighed on canola values.
Concerns about the state of the European economy, stemming from rising 10-year bond yields in Spain, also put downward pressure on canola, traders said.
Profit taking as canola futures surged to new highs last week was also responsible for some of the downward price slide, participants said.
Ideal weather for the development of canola in most western Canadian growing regions was also putting downward pressure on the commodity’s value.
However, some weakness in the Canadian dollar limited the declines as it made canola more attractive to foreign buyers, traders said.
Activity was on the light side at midday Monday, traders said. As of 10:41 CDT, about 4,900 canola contracts had traded.
Durum, barley and milling wheat were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:41 CDT: