ICE Canola Lower with Outside Oilseeds

Losses in outside oilseed markets were contributing to canola’s decline, with CBOT soybeans weaker at midsession, and sharp overnight losses posted by both Malaysian palm oil and European rapeseed, analysts said.

Farmer selling was a popular theme in the market as well, although one Winnipeg-based trader said producers "weren’t going crazy on selling product." Some producers are hoping values will turn around, and are trying not to panic, he added.

Some speculative long liquidation was another factor adding to the defensive tone of values, market watchers said.

Declines were tempered by an increased demand from the domestic crushing sector. The trader said crusher demand had been stronger than in the previous three sessions, where canola lost in excess of C$10/per ton each day.

The pricing of routine export business was another factor giving support to the market, analysts said.

At 10:40 CST, there had been about 13,000 canola contracts traded, with about 7,400 of those tied to spreading.

Western barley futures were unchanged and untraded at midsession.

Prices in Canadian dollars per metric ton at 10:40 CST: