By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 29/12 – Canola futures on the ICE Canada trading platform finished Monday’s session on the defensive with the sell-off in the CBOT soybean complex as well as other oilseed sectors, behind the downward price slide, market watchers said.
The early losses in canola were influenced by the declines experienced by Malaysian palm oil and European rapeseed futures. The significant sell-off in CBOT soybean and soyoil futures further encouraged the price drop in canola.
A pick up in elevator company hedge selling, spurred in part by an increase in farmer deliveries during the weekend, also sparked some of the price declines, traders said.
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The taking of profits by a variety of market participants, after canola posted modest advances during the week, also weighed on canola futures, brokers said. The arrival of beneficial precipitation in the main soybean growing areas of Brazil was also viewed as an undermining price influence.
The downward price push was however, tempered by steady commercial demand under the market. Some of that interest was said to be covering domestic crusher needs. The pricing of both old and new export business was also linked to the demand.
The downswing in the value of the Canadian dollar, which moved below parity with the US currency, also limited the losses in canola, traders said.
There were an estimated 16,302 canola contracts traded Monday, down from the 20,498 contracts that changed hands during the previous session. Of the contracts that changed hands, 10,416 were spread related.
Milling wheat, barley and durum contracts were untraded and unchanged.
Prices are in Canadian dollars per metric ton.
