By Dwayne Klassen, Commodity News Service Canada
February 14, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 8:42 CST Thursday morning with easing demand and the losses in the outside oilseed markets accounting for the downward price action, industry watchers said.
CBOT soybean and soyoil futures were on the defensive early as were Malaysian palm oil futures, brokers said.
Some chart based liquidation by speculative and commodity fund accounts also prompted some of the price weakness seen in canola.
The losses in canola were also linked to a slow down in demand from domestic crushers as well as from export outlets, brokers said.
Additional weakness in canola also came from the pending large soybean harvest in South America and from indications that Australia’s canola crop will be larger than first anticipated.
Ongoing concerns about tight supplies helped to limit the downside in canola
As of 8:42 CST an estimated 2,549 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:42 CST.
