By Dwayne Klassen, Commodity News Service Canada
April 1, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to lower price levels at 8:42 CDT Monday morning with some of the weakness linked to Thursday’s bearishly construed USDA reports, market watchers said.
Chart-based speculative and commodity fund liquidation orders also helped to send canola futures to the minus side of the market, brokers said.
Malaysian palm oil futures declined to a two-month low overnight which contributed to some of the price weakness seen in canola.
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Losses early in CBOT soybean and soyoil futures further added to some of the downward price action.
The losses in canola were slowed by sentiment that values have now become oversold and were in need of a correction to the upside, traders said.
Steady demand from the export sector, believed to be mostly covering old sales, also was slowing the downward price slide. Continued ideas of tight old-crop canola stocks also restricted the price weakness.
As of 8:42 CDT an estimated 824 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:42 CDT.
