By Dwayne Klassen, Commodity News Service Canada
January 10, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 11:22 CST Thursday morning. Activity in canola was described as choppy with few market participants willing to take on positions ahead of the supply/demand reports scheduled to be released by the USDA on Friday.
Some of the weakness in canola reflected steady farmer deliveries of canola into the cash pipeline in western Canada. Brokers noted that grain companies were encouraging farmers to deliver canola ahead of the USDA report.
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Some of the downward price action in canola also reflected the losses seen in CBOT soybean and soyoil futures. Losses overnight in Malaysian palm oil and European rapeseed futures further undermined canola.
Firmness in the Canadian dollar contributed to the bearish price sentiment as did indications that export interest in canola was beginning to ease.
Underlying support in canola continued to come from the tight ending stocks scenario and from steady domestic crusher demand.
As of 11:22 CST, about 8,554 canola contracts had traded. Of those contracts, spreading accounted for 6,074 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 11:22 CST:
