By Dwayne Klassen, Commodity News Service Canada
February 25, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 10:47 CST Monday morning with the declines in the outside oilseed markets sparked some aggressive commodity fund liquidation, industry watchers said.
Canola had initially found some support from light commercial demand, triggered in part by the continued decline in the value of the Canadian dollar, brokers said. Some of the early commercial interest came from both domestic crushers and export outlets, traders said.
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The lack of new crop pricing by farmers in western Canada and talk of lower planted area this spring helped to temper the price declines seen in the new crop canola contracts, brokers said.
Some of the downward price action seen in the nearby months was linked to the sharp losses overnight in Malaysian palm oil and European rapeseed futures. The declines posted in CBOT soybean and soyoil futures Monday also added to the bearish price sentiment.
Additional downward pressure in canola came from reports od more beneficial precipitation for the soybean crops in Argentina on the weekend, traders said.
Spreading was a feature of the activity in canola and helped to augment the volume total.
As of 10:47 CST, about 17,145 canola contracts had traded. Of those contracts, spreading accounted for 14,668 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:47 CST:
