By Dwayne Klassen, Commodity News Service Canada
Winnipeg – November 5/12 – CNS – Canola contracts on the ICE Futures Canada platform were trading in a mixed range in early morning activity. Activity was on the choppy side with a number of market participants taking to the sidelines to await the outcome of the US Presidential election on Tuesday, market watchers said.
Some follow-through selling from the sharp sell-off seen on Friday helped to undermine the nearby canola future. Declines overnight in Malaysian palm oil and European rapeseed futures helped to spark some of the downward price action as did the losses seen in CBOT soybean and soyoil futures early Monday, brokers said.
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Speculative and commodity fund long liquidation was also evident and helped to depress prices down.
Underlying support in canola came from the need of commercials to cover domestic crusher needs as well as export commitments, traders said. The tighter than anticipated canola supply situation in western Canada continues to fuel much of that interest.
Some elevator company hedge selling was evident, but farmers were seen as reluctant to deliver canola unless deemed necessary by financial difficulties.
As of 8:24 CST, about 915 canola contracts had traded.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 8:24 CST:
