By Dwayne Klassen, Commodity News Service Canada
Winnipeg – October 25/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:53 CDT Thursday morning. The taking of profits by a variety of participants weighed on canola with the downturn in CBOT soybean and soyoil values adding to the bearish price sentiment, market watchers said.
A small increase in elevator company hedge selling, which was tied to a pick up in farmer deliveries of canola into the cash pipeline overnight, also encouraged some of the price weakness, traders said.
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Some of the losses in canola were also linked to indications that some of the pricing of the Canadian canola sales to China have now been completed, brokers said.
However, there still remains some good demand under the market, which was preventing canola from experiencing any significant downward price push. Some of that interest was linked to domestic crusher needs and the pricing of old sales to Japan.
The tight Canadian canola ending stocks picture also continued to provide some underlying support.
Supportive chart signals were also helping to generate a firm price floor for canola, brokers said.
As of 10:53 CDT, about 5,080 canola contracts had traded. Of those contracts, spreading accounted for 3,288 of the trades.
There were 2 milling wheat contracts exchanged between commercials at a lower price level.
Durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:53 CDT:
