By Dwayne Klassen, Commodity News Service Canada
June 17, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at steady to lower price levels with the activity so far this morning confined to the three nearby months. Speculative and commodity fund liquidation orders helped to undermine values as did the losses in CBOT soybean futures this morning, market watchers said.
Steady farmer selling of canola during the weekend added to the bearish price sentiment as did the mostly favourable weather conditions for the development of the crops in western Canada, traders said.
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Some early morning firmness in the Canadian dollar was also viewed as an undermining price influence.
The downward price action in canola was capped by the tight ending stocks forecast for canola for both the 2012/13 (Aug/Jul) and 2013/14 seasons forecast by Agriculture Canada in a
supply/demand report that was released Friday evening.
Steady commercial demand, believed to be covering domestic crusher demand as well as both old and new export business, also kept a firm floor under values.
New highs in Malaysian palm oil futures overnight, combined with some minor strength in European rapeseed futures also provided some support. Strength in CBOT soyoil futures were also seen as an underpinning price influence.
As of 08:34 CDT, about 3,520 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 08:34 CDT
