By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 16/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:39 CST Friday morning with the declines in CBOT soybean complex values associated with the bearish price sentiment, market watchers said.
Chart based liquidation orders from a variety of market participants helped to undermine canola futures. The evening up of positions ahead of the weekend was also a feature of the activity.
The favourable weather conditions for the development of the soybean crops in South America also remained an undermining price influence on canola, traders said.
The losses were kept in check by scale down commercial buying, believed to be covering old export business to Japan. Scale down domestic processor interest was also evident and slowed the price drop, brokers said. However, they also noted that crush margins for processors were now at the lowest level in four years and were causing interest from this sector to wane.
Farmer deliveries of canola into the cash pipeline remained slow and in turn tempered some of the price weakness, traders said.
Spreading was a feature of the activity in canola and was helping to bolster the volume total.
As of 10:39 CST, about 5,580 canola contracts had traded. Of those contracts, spreading accounted for 3,134 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:39 CST:
Futures Prices as of November 27, 2014
Prices are in Canadian dollars per metric ton