ICE Canola Futures Drop As Outside Oilseeds Decline

Position evening ahead of an updated crop production survey scheduled to be released by Statistics Canada on Monday was likely to be a feature of the activity.

Sharp losses were exhibited in e-CBOT soybean values overnight, with European rapeseed and Malaysian palm oil futures also experiencing some significant price drops.

Expectations that CBOT soybean and soyoil values will be down sharply with the start of the North American day session also stimulated some of the selling seen in canola, brokers said.

Adding to the bearish price atmosphere in canola will be the weather outlooks calling for conditions conducive to making harvest progress on the Canadian prairies, analysts said. Some elevator company hedge selling was also anticipated as producers finally combine canola.

Talk of better than anticipated canola yields from fields that have already been harvested in western Canada were also prompting some light selling of canola, brokers said.

Weather outlooks calling for much needed precipitation in the soybean growing regions of South America were also viewed as undermining price influences.

The weakness in canola was being tempered by the recent improvement in canola crush margins. The pricing of old export business was also an underpinning price influence.

As of 9:28 EDT, there were 1,572 canola contracts traded.

As of 9:28 EDT, no western barley contracts had been traded.