By Dwayne Klassen, Commodity News Service Canada
February 26, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at weaker price levels at 8:55 CST Tuesday morning with declines in the outside oilseed markets fuelling much of the downward price action, industry watchers said.
Significant losses were experienced overnight in Malaysian palm oil as well as European rapeseed futures. Declines were also being seen in CBOT soybean and soyoil futures early Tuesday.
Steady speculative and commodity fund liquidation added to the bearish price sentiment in the commodity, brokers said.
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Sentiment that canola futures are overpriced and need to come down in order to stimulate new crop demand, also was viewed as an undermining price influence.
The improved growing conditions for the soybean crops in South America also added to the downward price monentum, brokers said.
Some underlying support came from scale down domestic demand and some minor pricing of old export business.
Recent softness in the Canadian dollar also helped to slow the price declines in canola, traders said.
As of 8:55 CST an estimated 3,306 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:55 CST.
