By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 15/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at slightly weaker price levels at 10:41 CST Thursday morning with values being undermined by the declines seen in the nearby CBOT soybean contracts, market watchers said.
Canola had found good support earlier in the session from the pricing of previously conducted Japanese business by commercial accounts, traders said. However, once those commitments were covered the demand in the market faded, allowing canola to push slightly lower.
The favourable conditions for the development of a record sized South American soybean crop also continued to cast a bearish pall over canola futures, brokers said.
Bearish chart signals also added to the price weakness displayed by the commodity.
Some underlying support in canola was stemming from the firm price tone seen in CBOT soyoil values. The absence of significant farmer deliveries of canola into the cash pipeline in western Canada also tempered the price declines, brokers said.
Spreading was a feature of the activity in canola and was helping to augment the volume total.
As of 10:41 CST, about 6,211 canola contracts had traded. Of those contracts, spreading accounted for 4,330 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:41 CST: