By Dwayne Klassen, Commodity News Service Canada
March 1, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at mostly weaker price levels at 8:27 CST Friday morning with the declines in the outside oilseed markets the key bearish price influence, industry watchers said.
The erosion of Malaysian palm oil and European rapeseed futures continued overnight helping to depress canola values. Losses early Friday in CBOT soybean and soyoil futures further weighed on canola values, brokers said.
Elevator company hedge selling, spurred on by steady farmer deliveries of canola into the cash pipeline, contributed to the price declines.
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Light commodity fund and speculative selling was also evident which further undermined canola prices.
The losses in canola were being offset in part by the continued downswing in the value of the Canadian dollar, traders said. Light scale down domestic crusher demand and the pricing of old export business helped to slow the price weakness.
Activity in canola was on the lighter side early Friday with some evening up of positions ahead of the weekend a small feature of the activity.
As of 8:27 CST an estimated 1,449 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:27 CST.
