|By Terryn Shiells, Commodity News Service Canada|
|September 7, 2012|
|WINNIPEG – Canola futures on the ICE Futures Canada platform were trading at lower price levels at 8:33 CDT, as the losses seen in CBOT soybeans weighed on values, analysts said.
Ideas that yield potential for soybeans in the US has improved due to recent rains in the US Midwest, were responsible for much of the price weakness in CBOT soybeans.
Weakness in Malaysian palm oil and European rapeseed futures during overnight trade also put downward pressure on canola values, market watchers said.
The upswing in the value of the Canadian also added to the bearish price sentiment. The stronger Canadian dollar curtailed demand from foreign buyers, as it made canola a more expensive investment for them, traders said.
However, reports of lower than expected yields from western Canadian farmers limited the declines, brokers said. Damage from insects, disease and hot weather lowered yields in fields across western Canada.
A Statistics Canada stocks report released Friday morning didn’t have much impact on the market as canola stocks fell within the range of market expectations, participants said. StatsCan pegged canola stocks in Canada at 787,700 tonnes, which compares with pre-report expectations between 600,000 and 1.3 million tonnes.
As of 8:33 CDT, about 1,270 canola contracts had traded.
Milling wheat, durum and barley were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:33 CDT:
|Nov||636.80||dn 3.20 Jan 640.50 dn 3.30 Mar 641.20 dn 3.70 Milling Wheat Oct 294.00 unch Dec 301.50 unch Durum Oct 305.40 unch Dec 309.90 unch Barley Oct 264.50 unch Dec 269.50 unch|
Futures Prices as of June 18, 2013
Prices are in Canadian dollars per metric ton