ICE Canola Down, Hedging, CBOT Losses Bearish

The nearby November, January and March contracts were the mostly actively traded.

Early losses in canola were stimulated by the weakness seen in Malaysian palm oil and the e-CBOT soybean futures, brokers said. The declines in CBOT soybean and soyoil futures with the start of the North American day session helped to amplify the selling interest seen in canola, traders said.

Contributing to the downward price slide in canola were overseas hedge offers, with companies overseas covering the larger than expected European rapeseed harvest, traders said.

News that European rapeseed was also moving onto the world export market and displacing Canadian canola, helped to spark some downward price action in ICE canola futures, brokers said.

The declines in canola were also being fueled by the absence of a frost forecast for the crops in Western Canada. Brokers noted that the clear and warm temperatures forecast for the next week and a half will be beneficial to canola`s development.

"Producers in parts of western Canada have begun to harvest canola and elevator companies are now thinking that the new crop supply situation may be larger than first anticipated," a broker said.

Technical signals have generally become bearish in recent days and that was also helping to keep canola on the defensive, traders said.

Light exporter pricing of old business and steady demand from domestic processors helped to limit the price slide seen in canola.

There were an estimated 10,693 canola contracts traded at 10:47 CDT. Of the contracts traded 3,326 were spread related.

There were 217 western barley futures traded as of 10:47 CDT. Of the contracts traded, 132 were spread related.

Bearish chart signals put downward pressure on barley contracts with commercials seen on both sides of the activity, brokers said.

Prices in Canadian dollars per metric ton at 10:47 am CDT: