By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 13/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at significantly weaker price levels at 10:41 CST Tuesday morning with the liquidation of long positions by speculative and commodity fund accounts stimulating the downward price slide, market watchers said.
Some of the downward price action in canola reflected the sell-off in the CBOT soybean complex on Monday when the ICE Canada platform was closed in observance of Remembrance Day.
The penetration of technical support levels helped to generate the selling that entered into canola, brokers said. Sharp losses seen in European oilseed prices on Monday further weighed on canola.
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The declines in canola were slowed by the absence of farmer deliveries and by scale down commercial buying, traders said. Some of the commercial interest was said to be covering old export business as well as some domestic processor needs.
The upward corrective bounce seen in CBOT soybean futures Tuesday was helping to slow the price declines in canola.
Spreading was a feature orf the activity in canola and was helping to augment the volume total.
As of 10:41 CST, about 10,8978canola contracts had traded. Of those contracts, spreading accounted for 6,108 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:41 CDT:
