By Dwayne Klassen, Commodity News Service Canada
January 4, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were posting losses at 08:39 CST Friday morning with bearish chart signals and the declines in the CBOT soybean complex stimulating the downward price action, market watchers said.
The unloading of positions by speculative and commodity fund accounts contributed to the price weakness displayed by canola. Some light farmer selling, tied to premiums being offered by elevator companies, helped to undermine canola values, brokers said.
The favourable weather conditions for the development of record large soybean crops in Brazil and Argentina further weighed on canola futures.
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The losses in canola were being restricted by steady commercial buying interest, most of which was believed to be the pricing of old export business, traders said. Some minor domestic crusher needs were also linked to some of that demand.
Small gains overnight in Malaysian palm oil and European rapeseed futures further tempered the downward price slide seen in canola.
As of 08:39 CST an estimated 1,019 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 08:39 CST.
