By Terryn Shiells, Commodity News Service Canada
December 31, 2012
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at sharply lower price levels at 8:38 CST Monday. Year-end speculative selling was behind much of the price weakness, analysts said.
Profit-taking following Friday’s sharp advances and ideas that the gains were overdone and the market needed a downward correction also added to the bearish price sentiment.
Losses seen in the CBOT soybean complex also spilled over to weigh on canola values Monday morning.
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Much of the selling that took soybeans down was linked to traders shedding riskier assets ahead of the US ‘fiscal cliff’ deadline, which is at midnight Monday.
Generally good weather conditions for the development of an expected record large soybean crop in South America also put downward pressure on both soybeans and canola, traders noted.
Declines seen in Malaysian palm oil and European rapeseed futures during overnight trade also pulled canola values to the downside.
Ideas that canola is overpriced compared to other oilseeds also generated some of the downward price action, according to brokers.
As of 8:38 CST Monday, about 2,277 canola contracts had traded.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 8:38 CST:
