By Dwayne Klassen, Commodity News Service Canada
February 11, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 08:32 CST Monday morning with follow-through liquidation from Friday’s lower close linked to the declines, market watchers said.
Adding to the bearish sentiment in canola were the significant declines seen in CBOT soybean and soyoil futures. The large South American soybean crop, which will be harvested in the very near future, also continues to exert downward pressure on the oilseed sector, including canola.
The Malaysian palm oil market is closed for that country’s New Year celebrations. Small losses were seen in European rapeseed futures overnight.
Some of the downward price action in canola was also tied to steady farmer deliveries in to the cash pipeline as cash bids from elevator companies and domestic processors continue to entice movement, brokers said.
Supportive chart signals and the tight supply situation continue to provide underlying support for canola.
As of 08:32 CST an estimated 4,854 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:32 CST.
Futures Prices as of December 6, 2013
Prices are in Canadian dollars per metric ton