By Dwayne Klassen, Commodity News Service Canada
April 22, 2013
Winnipeg – Canola futures on the ICE Canada trading platform finished on the defensive with the losses in the outside oilseed markets encouraging most of the downward price action, industry watchers said.
The losses in CBOT soybean and soyoil futures stimulated the early sell-off in canola with declines overnight in Malaysian palm oil and European rapeseed contributing to the bearish price sentiment.
The taking of profits after Friday’s strong independent performance in canola added to the downward price push seen on Monday, brokers said. Speculative and commodity fund liquidation orders were also evident and further undermined canola.
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The unloading of positions ahead of the first planting estimates from Statistics Canada on Wednesday also sparked some of the downward price action, traders said.
The losses in canola were restricted by concerns about tight old crop canola supplies. The delayed planting of the various crops on the Canadian prairies also provided some underlying support to values, brokers said.
Steady domestic crusher and exporter usage of canola contributed some minor support to the market as did the slow pace of farmer deliveries into the cash pipeline, brokers said.
There were an estimated 20,792 canola contracts traded Monday, down from the 26,664 contracts that changed hands during the previous session. Of the contracts traded, 17,636 were spread related.
No milling wheat, durum or barley contracts were traded during the session. However, ICE Canada lowered durum values at the close.
Prices are in Canadian dollars per metric ton.
