ICE Canola Futures Weaken On Outside Markets, Lack Of Frost

Near ideal weather for the development of the canola crop in western Canada and for soybeans in the US Midwest was viewed as bearish for oilseed prices in general, brokers said.

Weather forecasts are calling for warm, dry conditions through the end of next week for much of Western Canada.

Environment Canada reported that as of the end of August, Manitoba has now seen 10 straight months of below normal temperatures, something that has not been accomplished in 100 years. But although the summer heat has arrived late, with the next 8 days forecast sunny and highs of 28 degrees Celsius, late developing crops are making up ground quickly at the back end of the growing season, brokers said.

Overnight losses in Malaysian palm oil, e-CBOT soybean futures and European rapeseed prices helped to stimulate some light selling in canola overnight, traders said.

Some of the declines in canola were also in anticipation of CBOT soybean and soyoil futures starting the North American day session on the defensive.

Weakness in canola was also coming from concern that financial problems in China could lead to a slowing of purchases and even cancellations of previous made deals, traders said.

Contributing to the losses in canola were bearish chart signals and the absence of fresh export demand.

Some brokers felt the hedging of the large European rapeseed crop at ICE Futures Canada was also likely to continue, adding to the bearish price sentiment.

Weakness in the Canadian dollar, the pricing of old export business and slow farmer selling was helping to restrict the downward price action in canola, brokers said. Steady domestic crusher demand was also an underpinning price influence.

As of 9:52 am EDT, there were 1,425 canola contracts traded.

As of 9:52 EDT, no western barley contracts had changed hands.