By Dwayne Klassen, Commodity News Service Canada
February 13, 2013
WINNIPEG – Canola contracts on the ICE Futures Canada platform were trading at lower price levels at 8:44 CST Wednesday morning with much of the downward price action linked to the losses in the outside oilseed sectors, market watchers said.
CBOT soybean and soyoil futures were on the defensive early which sparked the downward slide in canola values. Losses overnight in Malaysian palm oil futures also added to the bearish price sentiment.
Some chart based liquidation by nervous long position holders also prompted some of the price weakness seen in canola.
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The losses in canola were also linked to a slow down in demand from domestic crushers as well as from export outlets, brokers said.
Reports of larger than anticipated canola production in Australia and the pending harvest of a record large soybean crop in South America also were considered undermining price influences on canola, traders said.
Concerns about tight supplies helped to limit the downside in canola as did a drop off in farmer deliveries of the commodity into the cash pipeline.
As of 8:44 CST an estimated 3,887 canola contracts had changed hands.
Prices are in Canadian dollars per metric ton and were as of 8:44 CST.
