By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 8/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at steady to fractionally lower levels in early Thursday morning activity. Activity was described as being on the light side ahead of Friday’s release of new USDA supply/demand balance sheets, market watchers said.
Some of the downward price action in canola reflected light chart-based speculative and commodity fund liquidation orders. Weakness overnight in Malaysian palm oil helped to encourage some of the downward price action, traders said.
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A minor downturn in CBOT soybean futures early Thursday also helped to encourage some light selling in canola, brokers said.
Elevator company hedge selling, tied to a small pick up in farmer movement of canola into the cash pipeline also weighed on values.
Underlying support in canola came from steady commercial demand, believed to be covering both old export business as well as some minor domestic crusher needs, traders said.
Minor weakness in the Canadian dollar early Thursday also helped to slow the price declines in canola.
As of 8:34 CST, about 940 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:34 CST:
