ICE canola futures weaken on demand drop-off, CBOT declines

Dwayne Klassen, Resource News International

Winnipeg, March 25 — Canola contracts on the ICE Futures Canada platform were trading at unchanged to lower price levels as of 9:50 EDT. A drop off in demand, losses overnight in the outside oilseed markets and lower calls for CBOT soybean values with the start of the North American trading session influenced the downward price movement seen in canola, market watchers said.

The e-CBOT soybean complex lost ground overnight as did Malaysian palm oil and Matif rapeseed futures. Global crude oil values were also on the defensive, adding to some of the bearish price sentiment in canola, brokers said.

Weather issues were also garnering attention among market participants. Up in the northern Plains and into southern Manitoba, the Red River Valley continues to experience heavy flooding and the river has yet to crest with blizzard conditions in place this morning following consecutive days of steady rain.

The Argentine farmers’ strike appears to be factored into the market for now, traders said. Activity in new crop canola was expected to be influenced by positioning ahead of the U.S. Department of Agriculture’s Prospective Plantings report (March 31). The report is expected to show a big jump in U.S. soybean acreage.

Underlying support in canola was expected to come from a slow down in farmer deliveries with the establishment of spring road bans across Western Canada also friendly.

The Canadian dollar was slightly firmer early Wednesday and was viewed as an undermining price influence.

As of 9:50 a.m. EDT, there were 1,084 canola contracts traded.

At 9:50 a.m. EDT, no western barley contracts had traded with prices unchanged.

Prices in Canadian dollars per metric ton at 9:50 a.m. EDT:

          Price    Change
Canola
     May     420.90 Dn 1.70
     Jul     425.50 Dn 2.30
     Nov     430.40 Dn 3.00
 
Western Barley
     May     146.00 Unchanged
     Jul     152.40    unchanged