By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 22/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at mostly weaker price levels in early Thursday morning activity. A small drop off in commercial demand allowed values to drift lower with the declines seen overnight in Malaysian palm oil and European rapeseed values adding to the bearish price sentiment, market watchers said.
Activity in canola was described as extremely light and was expected to remain choppy throughout the duration of the session given that the Chicago Board of Trade was closed for the US Thanksgiving Holiday. The US markets will open on Friday but for an abbreviated session.
Much of the drop off in demand came from the domestic sector, with processors now working with their lowest crush margins in quite some time, brokers said.
Some light chart-based liquidation from speculative and commodity fund accounts was also evident and helped to place a few contracts on the defensive.
The favourable weather for the development of record large soybean crops in Brazil and Argentina also was considered an undermining price influence.
The declines in canola were being slowed by firmness in the cash market, with farmers unwilling to deliver large quantities of the commodity at current values, traders said,
Some light scale-down exporter pricing was noted, but the buying was extremely unaggressive.
As of 8:37 CST, about 424 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:37 CST:
Futures Prices as of July 2, 2015
Prices are in Canadian dollars per metric ton