ICE Canola Weakens With Outside Markets

Canola’s price slide was influenced by double-digit losses in e-CBOT soybeans, as well as significant overnight declines in European rapeseed and Malaysian palm oil futures, traders said.

Falling equities and weaker crude oil futures further undermined values.

Chicago soybeans are called 10 to 12 US cents a bushel lower for the start of North American trade, which could further extend canola’s early losses. Improving weather conditions in the US and speculative selling in US commodity markets will be bearish price influences for North American oilseeds.

Canola’s downside potential will be held in check, however, by the sharp retreat of the Canadian dollar Monday and uncertainty about the prospects for the emerging canola crop in Canada, analysts said. Manitoba crops have benefited from recent warm weather while dry areas of Saskatchewan also received much- needed rainfall over the weekend.

Parched areas of Alberta, however, missed much of the precipitation and the trade is worried that some crops in Saskatchewan were already too stressed by dryness to be saved by the recent showers.

Slow farmer selling in Western Canada will also help provide a floor for canola prices, traders said.

Canola volumes were moderate in early trade, with 1,560 canola contracts having changed hands as of 9:10 CDT.

Western barley futures were lower early Monday although only 5 contracts had been traded as of 9:10 CDT.

Prices in Canadian dollars per metric ton at 9:10 CDT: