By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 10/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:26 CST Monday morning with the losses in CBOT soybean complex values behind the downward price action, market watchers said.
Activity in canola was described as disappointing with participants not willing to take on large positions ahead of the USDA reports scheduled for release Tuesday morning, brokers said.
The upswing in the value of the Canadian dollar was viewed as an undermining price influence on canola with the losses overnight in European rapeseed futures also adding to the bearish price sentiment.
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A drop off in domestic crusher demand and the improved weather conditions for the development of the record large soybean crop in South America further weighed on canola futures, traders said.
Some chart based liquidation was also evident and helped to undermine canola futures.
Underlying support in canola came from steady commercial demand, believed to be covering routine export sales. A drop off in farmer deliveries of canola to the cash pipeline also was slowing the price decline, traders said.
Spreading was a feature of the activity in canola and was helping to bolster the volume total.
As of 10:26 CST, about 5,636 canola contracts had traded. Of those contracts, spreading accounted for 3,384 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:26 CST:
