By Dwayne Klassen, Commodity News Service Canada
Winnipeg – Canola futures on the ICE Canada trading platform finished Monday’s session on the defensive with much of the downward price action associated with good weather
for crop development across most of the Canadian prairies and the sell-off experienced in the CBOT soybean complex, market watchers said.
The unloading of positions by speculative and commodity fund accounts ahead of the USDA supply/demand reports due out later this week also contributed to the bearish price sentiment in canola, traders said.
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Some of the early selling in canola was also encouraged by the losses seen overnight in Malaysian palm oil and European rapeseed futures.
The upswing in the value of the Canadian dollar was an undermining price influence as was a small drop off in commercial buying interest.
The rolling of spreads remained a feature in canola with the activity helping to exert additional downward pressure on the July future but tempering the sell-off in the deferred months,
brokers said.
A drop off in farmer deliveries of canola into the cash pipeline helped to temper the price declines as did the need to keep a weather premium built into values.
There were an estimated 21,695 canola contracts traded Monday, up from the 17,682 contracts that changed hands during the previous session. Of the contracts that were traded, 9,208
No milling wheat, durum or barley contracts were traded during the session.
Prices are in Canadian dollars per metric ton.
