By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 10/12 – Canola futures on the ICE Canada trading platform finished mostly on the defensive Monday with the early declines in the CBOT soybean complex and the upswing in the value of the Canadian dollar behind some of the downward price momentum, market watchers said.
Only the March and May canola contracts posted an advance.
Activity in canola was described as light and disappointing with few market participants wanting to establish large positions ahead of the USDA reports scheduled for release Tuesday morning.
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Early selling in canola was linked to the declines posted overnight in European rapeseed futures. The losses in canola were also tied to the sell-off seen in both CBOT soybean and soyoil futures, although when those losses were tempered later in the day, the price drop in canola was tempered, brokers said.
A drop off in domestic crusher demand and the improved weather conditions for the development of the soybean crops in Brazil and Argentina were also viewed as undermining price influences.
The declines in canola were offset in part by steady commercial demand, said to be covering old export business to Japan. The drop off in farmer movement of canola into the cash pipeline helped to restrict tohe downward price action.
Continued concerns about the tight canola supply in Canada also tempered the price drop in canola.
There were an estimated 11,382 canola contracts traded Monday, down from the 23,826 contracts that changed hands during the previous session. Of the contracts that changed hands, 8,056 were spread related.
There were no milling wheat contracts traded during the day although values were lowered by ICE Canada at the close.
No durum wheat and barley contracts were traded.
Prices are in Canadian dollars per metric ton.
