By Dwayne Klassen, Commodity News Service Canada
January 11, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 10:29 CST Friday morning. Activity in canola was described as choppy with few market participants willing to take on positions ahead of the supply/demand reports scheduled to be released by the USDA at 11:00 CST Friday morning.
Some of the weakness in canola reflected the declines experienced by CBOT soybean and soyoil futures. Weakness overnight in Malaysian palm oil and European rapeseed futures contributed to some of the bearish price sentiment, traders said.
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General firmness of the Canadian dollar and declining demand from the export sector helped to weigh on canola futures. Some chart based speculative and commodity fund liquidation was also evident and helped to undermine canola futures, brokers said.
The downward price slide in canola was tempered in part by a slow down in the level of farmer deliveries of the commodity into the cash market. Steady domestic crusher demand also helped to keep a firm floor under canola.
Underlying support in canola also continued to come from the tight ending stocks scenario.
As of 10:29 CST, about 3,604 canola contracts had traded. Of those contracts, spreading accounted for 1,000 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:29 CST:
