By Dwayne Klassen, Commodity News Service Canada
June 13, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished Thursday’s session on the defensive with the declines in the outside oilseed sector behind much of the downward price movement, market watchers said.
Losses overnight in Malaysian palm oil and European rapeseed futures sparked some of the early declines in canola with the weak tone in the CBOT soybean complex contributing to the bearish price sentiment.
The unloading of long positions by speculative and commodity fund accounts was also evident and added to the price4 weakness in canola, traders said.
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Steady farmer deliveries of canola into the cash pipeline in western Canada was an undermining price influence. Favourable weather for the development of the recently seeded canola crop on the Canadian prairies further weighed on values, brokers said.
Talk of large US soybean acreage estimates contributedc to the price weakness in canola.
The declines in canola were restricted in part by steady commercial buying. A good portion of that interest was said to be covering domestic processor needs as well as routine export business to Japan, brokers said.
The buying back of previously sold positions at the lows of the day helped to temper the downward price action.
There were an estimated 20,947 canola contracts traded Thursday, up from the 15,819 contracts that changed hands during the previous session.
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
