By Dwayne Klassen, Commodity News Service Canada
January 9, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 10:39 CST Wednesday morning. Activity in canola was described as cautious with few participants willing to take on large positions ahead of Friday’s updated supply/demand tables from the USDA, market watchers said.
Some of the weakness in canola was associated with a pick up in farmer deliveries of canola into the cash pipeline, brokers said. They added that the premiums being offered by the grain companies were starting to have the desired effect of increased movement.
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The declines seen in CBOT soybean futures overnight added to the bearish sentiment in canola, traders said.
A drop off in export demand for canola also contributed to the price weakness in the commodity. Overbought price sentiment and light chart based liquidation orders were also evident and helped to push canola values down, brokers said.
Underlying support in canola came from light domestic crusher demand and continued concerns about tight ending stocks of the commodity. Price firmness in Malaysian palm oil and European rapeseed futures overnight also provided some underlying support.
As of 10:39 CST, about 5,582 canola contracts had traded. Of those contracts, spreading accounted for 1,614 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:39 CST:
