By Dwayne Klassen, Commodity News Service Canada
Winnipeg – December 31/12 – CNS – Canola contracts on the
ICE Futures Canada platform were trading at lower price levels at
10:37 CST Monday morning with the taking of profits by a variety
of market participants and commodity fund liquidation behind much
of the downward price action, market watchers said.
Fund were seen pulling out of canola positions given the
uncertain financial situation currently facing the US Government,
brokers said.
The losses in canola were also linked to the sell-off seen
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The declines in CBOT soybean and soyoil futures also added to the
bearish sentiment in canola.
Some of the weakness in canola also reflected the minor
upswing in the value of the Canadian dollar and the mainly
favourable weather for the development of a record sized soybean
crop in South America, brokers said.
The declines in canola were pared in part by light scale
down commercial demand, said to be pricing old export business to
Japan as well as covering some domestic crusher needs.
The rolling of positions out of the January canola future
and into other contracts continued to be a feature of the
activity.
As of 10:37 CST, about 7,234 canola contracts had traded. Of
those contracts, spreading accounted for 4,728 of the trades.
Milling wheat, durum and barley contracts were unchanged and
untraded.
Prices in Canadian dollars per metric ton at 10:37 CST:
