ICE Canola Declines On Swine Flu Fears, Weak Outside Markets

Fears about the global outbreak of the swine flu were a key undermining factor for canola in overnight activity, traders said.

Ideas that lower pork consumption will reduce feed demand weighed heavily on grain and oilseed markets, while equity markets and crude oil future fell on ideas that the outbreak could impede global economic recovery, market watchers said.

Further undermining canola prices were declines in European Matif rapeseed values and Malaysian palm oil futures.

Overnight selling of canola was also tied to lower opening calls for the CBOT soy complex at the start of North American trading, brokers said.

Helping to provide a floor for canola values was Friday’s Statistics Canada report showing that western Canadian farmers intend to plant less canola this spring than expected, brokers said.

The Canadian dollar, meanwhile, was little changed in early activity and was not having an impact on canola prices.

Volumes in canola were moderate so far on Monday, with 2,901 contracts having changed hands as of 9:09 CDT. A portion of the activity was tied to inter-month spreading.

There was little interest, meanwhile, in the western barley market, with contracts untraded and unchanged as of 9:09 CDT.

Prices in Canadian dollars per metric ton at 9:09 CDT: