By Dwayne Klassen, Commodity News Service Canada
March 8, 2013
WINNIPEG
Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 11:15 CST Friday morning with much of the bearish price sentiment stemming from the extension of the losses in CBOT soybeans, market watchers said.
Soybeans had been trading at slightly lower levels heading into the release of the USDA supply/demand report. The report released at 11:00 CST failed to contain any major bullish news, allowing the decline in soybeans to be extended, brokers said.
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Canola also lost ground on the USDA soybean production forecast for soybeans. The report acknowledged that Argentina soybean output would be down, but the decline was not as large as had been anticipated. The report confirmed that Brazil’s soybean crop will indeed be large.
Elevator company hedge selling, associated with steady farmer deliveries of canola to the cash pipeline added to the downward price slide in the commodity, brokers said.
Chart-based liquidation from speculative and commodity fund accounts helped to amplify some of the price weakness in canola.
The losses in canola were restricted by scale down exporter pricing and some light domestic processor buying, brokers said.
As of 11:15 CST, about 6,894 canola contracts had traded. Of those contracts, spreading accounted for 2,271 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 11:15 CST:
