By Dwayne Klassen, Commodity News Service Canada
March 18, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 10:23 CDT Monday morning with much of the downward price slide associated with the declines experienced in the outside oilseed sector, market watchers said.
Some of the selling was inspired by the losses seen overnight in Malaysian palm oil and European rapeseed futures. Declines in CBOT soybean and soyoil futures also contributed to the price weakness in canola, traders said.
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Adding to the bearish sentiment was some light chart-based speculative and commodity fund liquidation.
The pending harvest of a record large soybean crop in South America and the movement of those cheaper soybeans onto the global scene were also viewed as an undermining price influence, brokers said.
Talk of a large North American oilseed crop being prodfuced in the upcoming crop year also weighed on values.
Some underlying support in canola came from scale down commercial demand, believed to be covering minor domestic crusher and exporter needs.
The downswing in the value of the Canadian dollar further tempered the downward price slide, traders said.
As of 10:23 CST, about 4,859 canola contracts had traded. Of those contracts, spreading accounted for 3,424 of the trades.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:23 CST:
