By Dwayne Klassen, Commodity News Service Canada
May 29, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mostly lower price levels at 10:19 CDT Wednesday morning. The taking of profits after Tuesday’s sharp gains helped to undermine values with the losses seen in the CBOT soybean complex contributing to the downward price action, market watchers said.
Sentiment that the gains seen on Tuesday were overdone also fuelled some of the price weakness.
The price declines in canola also reflected reports that oilseed farmers in North America have made good seeding progress and that most fields are off to a good start, brokers said.
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The ample supply of cheap South American soybean supplies on the global market also added to the bearish sentiment in canola.
The losses in canola were slowed by the absence of significant farmer deliveries into the cash market and by light scale down commercial demand, said to be covering routine export business as well as some domestic crusher needs, traders said.
The downswing in the value of the Canadian dollar also helped to slow the downward price slide.
As of 10:19 CDT, about 10,555 canola contracts had traded. Of the contracts traded, 6,366 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:19 CDT:
