By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 9/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at lower levels in early Friday morning activity. The declines in canola were a reflection of the bearish price impact the USDA’s supply/demand report had on CBOT soybean futures early Friday morning, market watchers said.
The USDA pegged US soybean output in 2012/13 at 2.971 billion bushels, which was at the high end of pre-report projections. US soyoil ending stocks were also raised significantly in the report, which also has bearish price implications for canola, brokers said. The USDA world soybean carryout projection was also raised, suggesting that there is no shortage of the commodity worldwide.
The liquidation of positions by a variety of market players ahead of a long holiday weekend also was adding to the downward price slide in canola. ICE Futures Canada will be closed on Monday in observance of Remembrance Day.
Light elevator company hedge selling was an undermining price influence in canola with chart-based weakness also adding tot he downward price action.
Underlying support in canola was stemming from steady commercial demand under the market. Much of that interest was said to be covering old export business and some minor domestic crusher needs.
As of 8:35 CST, about 5,133 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:35 CST: