By Dwayne Klassen, Commodity News Service Canada
January 8, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at slightly weaker price levels at 10:32 CST Tuesday morning. The lack of follow-through buying from Monday’s strong push upwards and some price weakness in CBOT soybean values helped to undermine values, market watchers said.
Activity in canola was considered to be consolidative in nature, brokers said.
Early strength in the Canadian dollar had helped to weigh on canola with overnight losses in Malaysian palm oil contributing to the bearish price sentiment.
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The losses in canola were being tempered by continued strong demand from export and domestic outlets, with premiums for canola continuing to be offered in select locations across the Canadian prairies, brokers said.
Talk of dryness issues with the recently planted soybean crop in Argentina, also was viewed as an underpinning price influence for canola, traders said.
As of 10:32 CST, about 3,469 canola contracts had traded. Of those contracts, spreading accounted for 2,120 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:32 CST:
