By Dwayne Klassen, Commodity News Service Canada
March 13, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at steady to weaker price levels at 8:44 CDT Wednesday morning. Canola values moved lower undermined by a drop off in demand from the commercial sector and the losses seen in the outside oilseed sector, market watchers said.
Declines were made overnight in Malaysian palm oil and both CBOT soybean and soyoil futures were on the defensive in early Wednesday morning activity.
Chart-based liquidation by speculative and commodity fund accounts helped to weigh on canola futures, traders said.
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Elevator company hedge selling, tied to farmer deliveries of canola into the cash pipeline ahead of the implementation of spring road restrictions, also stimulated some of the downward price action, brokers said.
The development and harvest of a large South American soybean crop also was viewed as an undermining price influence.
Some underlying support came from concerns regarding the tight old crop supply situation. The buying back of previously sold positions was also evident and helped to slow the price decline, traders sauid.
As of 8:44 CDT an estimated 2,477 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:44 CDT.
