By Dwayne Klassen, Commodity News Service Canada
June 10, 2013
Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at lower levels at 10:19 CDT Monday morning with the losses in the CBOT soybean complex and the absence of fresh demand accounting for the downward price action, market watchers said.
The unloading of long positions by speculative accounts ahead of this week’s latest round of supply/demand reports also contributed to the bearish sentiment in the commodity, brokers said.
Mostly favourable conditions for the development of the recently seeded canola crop also added to the price weakness.
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Some additional selling in canola was also stimulated by the losses experienced in Malaysian palm oil and European rapeseed futures overnight.
A drop off in commercial demand along with the upswing in the value of the Canadian dollar was also viewed as an undermining price influence, brokers said.
Some underlying support in canola came from tight old crop supplies and the need to keep a weather premium in the market given that there is still lots of time before the canola crop on the Canadian prairies will be harvested.
As of 10:19 CDT, about 5,364 canola contracts had traded. Of the contracts traded, 1,820 were spread related.
Milling wheat, durum and barley contracts were unchanged and untraded.
Prices in Canadian dollars per metric ton at 10:19 CDT:
