By Terryn Shiells, Commodity News Service Canada
December 27, 2012
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 8:38 CST Thursday, catching up with the losses seen in the CBOT soybean complex on Wednesday. Canadian markets were closed Wednesday to observe the Boxing Day holiday.
End of year profit-taking and position liquidation by speculative accounts was behind much of the softness seen in the CBOT soybean complex on Wednesday.
Generally good weather conditions for the development of an expected record large soybean crop in South America also put some downward pressure on both soybeans and canola, analysts noted.
Declines seen in European rapeseed futures during overnight trade spilled over to weigh on canola values as well.
However, the CBOT soybean complex was stronger Thursday morning, which could help canola values back off their lows, traders said.
Advances seen in Malaysian palm oil futures could also help to underpin canola values.
As of 8:38 CST Thursday, about 3,167 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:38 CST: