ICE Canola Futures Ease On Overseas Oilseed Declines

The e-CBOT soybean complex lost ground overnight as did Malaysian palm oil and European rapeseed values, brokers said.

Some of the downward price action in canola also came in anticipation of the lower calls for CBOT soybean and soyoil values with the start of the North American day session, traders said.

Declines in the outside equity and energy markets early Tuesday were also viewed as undermining price influences for canola, brokers said.

The Canadian canola industry is also dealing with disappointment that a Canadian delegation was not able to make any progress in resolving China’s demand that canola imports be certified as blackleg free.

Discussions are continuing between Canada’s delegation from Agriculture Canada and the Canadian Food Inspection Agency and China’s AQSIQ on resolving the blackleg issue.

A spokesperson with the Canola Council of Canada said in an industry briefing, China has not agreed to an extension of the November 15, 2009 implementation date. In addition, China has not shown any willingness to consider blackleg risk mitigation steps developed by Canadian industry, including transferring canola directly from vessels into crushing plant silos as well as the blackleg control measures that Canadian farmers use, such as crop rotation and growing blackleg resistant varieties.

This position is not acceptable to the Canadian canola industry. In the last ten years Canada has shipped over 10 million tonnes to China with no reports of blackleg transfer to the Chinese rapeseed crop.

Some underlying support in canola could come from the continued harvest delays in western Canada although forecasts calling for some warmer readings and clear days were seen as potentially undermining price influences.

As of 9:46 am EST, there were 1,991 canola contracts traded.

As of 9:46 am EST, no western barley contracts had been traded