ICE Canola Down On CBOT Soy Losses, Overbought Ideas

Activity was described as choppy with position evening ahead of new supply/demand balance sheets scheduled for release on Tuesday by the USDA a feature of the trade.

Contributing to the downward price slide were overnight declines in European rapeseed and Malaysian palm oil futures. Losses in Chinese rapeseed futures. after the first case of H1N1 was confirmed in China, helped to weigh on canola values.

The absence of fresh export demand from China was seen as an undermining price influence as were reports of better than expected seeding progress in western Canada on the weekend, brokers said.

The declines in canola were also reflecting the losses posted in global crude oil futures and the North American equity sector, traders said.

Some of the weakness in canola also reflected some hedge selling by elevator companies after some farmer deliveries were made during the weekend.

Underlying support in canola came
from steady domestic processor demand and the pricing of routine export business by commercials, brokers said.

Weakness in the Canadian dollar Monday was also viewed as a friendly price influence.

There were an estimated 4,388 canola contracts traded at 10:43 CDT. Of the contracts traded. 2,532 were spread related.

At 10:43 CDT, 1 western barley future had changed hands. Losses in CBOT corn futures and the absence of fresh demand from end-users in western Canada were linked to some of the selling interest, brokers said.

Prices in Canadian dollars per metric ton at 10:43 am CDT: