ICE Canola Follows CBOT Soybeans Down

Some of the early selling in canola was prompted by the declines overnight in e-CBOT soybean futures, as well as by the losses seen in Malaysian palm oil and Matif rapeseed prices.

Profit-taking by a variety of market participants contributed to the losses seen in canola with the lack of fresh export demand and a drop off in domestic processor demand adding to the downward price momentum, traders said.

The soft tone in North American equity markets and declining global crude oil futures also fueled some of the downward price slide.

Some light technically based liquidation orders also were linked to the declines in canola, brokers said.

The downward price action in canola was tempered in part by routine exporter pricing and the significant retreat in the value of the Canadian dollar Wednesday.

The need to keep a weather premium built into the market, also helped to limit the downside in canola, traders said.

Fears about continued cold weather this week has propped up prices as has the absence of precipitation in the west-central regions of Saskatchewan and east-central areas of Alberta. The potential for frost damage to crops on the weekend due to cold temperatures was adding to the uncertainty.

The rolling out of the nearby July contract and into the November future by commodity fund accounts was a feature of the activity seen in canola.

There were an estimated 9,519 canola contracts traded at 10:49 CDT. Of the contracts traded, 7,024 were spread related.

At 10:49 CDT, no western barley futures had changed hands.

Prices in Canadian dollars per metric ton at 10:49 am CDT: