|By Terryn Shiells, Commodity News Service Canada|
|July 26, 2012|
|WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:39 CDT, following losses in outside oilseed markets, analysts said.
Canola followed the weakness seen in the CBOT soybean complex. Soybeans were down at midday Thursday because of reports that much needed rain was seen in growing regions across the US Midwest.
Sharp declines seen in Malaysian palm oil and European rapeseed futures overnight also put downward pressure on canola values, participants said.
Continued farmer selling of both old and new crop canola was also responsible for some of the downward price slide, traders said.
Ideal weather conditions for the development of canola in many regions across the Canadian prairies also weighed on values. Some producers in Manitoba have already started harvesting canola, market watchers said.
The stronger Canadian dollar versus its US counterpart added to the bearish price sentiment, as it made canola less attractive to foreign buyers.
A “struggling” crush margin, which was down between C$6.00 and C$7.00 compared to the last couple of days, added to the price weakness, a Winnipeg-based trader said.
Activity was light at midday, as was spread trade, which contributed to a “choppy” market, brokers said. As of 10:39 CDT, about 4,030 canola contracts had traded, 1,546 of which were attributed to spreading.
Durum, barley and milling wheat were untraded and unchanged.
|Nov||613.80||dn 2.90 Jan 615.10 dn 3.80 Mar 616.60 dn 3.10 Milling Wheat Oct 330.00 unch Dec 337.50 unch Durum Oct 330.40 unch Dec 334.90 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of May 17, 2013
Prices are in Canadian dollars per metric ton