By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 12/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:23 CST Wednesday morning with the declines in the outside oilseed sector stimulating the downward price slide, market watchers said.
Losses were experienced overnight in Malaysian palm oil and European rapeseed futures which put early downward pressure on canola, brokers said. The sell-off in CBOT soybean and soyoil futures further undermined canola values.
The continued firmness of the Canadian dollar added to the bearish price sentiment in canola with some light speculative liquidation, tied to bearish chart signals, further enhancing the downward price move, traders said.
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Some elevator company hedge selling was also evident and helped to weigh on canola futures. Farmer deliveries of canola were said to be on the light side, and much of the line company selling was tied to previous stockpiled reserves.
The declines in canola were being slowed by steady commercial demand, said to be covering some domestic crusher needs as well as old export commitments. News overnight that China’s canola crushing pace was ahead of the year ago level also injected some support into values, brokers said.
As of 10:23 CST, about 6,735 canola contracts had traded. Of those contracts, spreading accounted for 4,014 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:23 CST:
